RVGD Revenge Designs surges with good volume
Friday 01st of February 2008 02:07:45 AM
RVGD has done really well since the previous post on this stock. It is quite amazing actually that it played out so predictably.
In my previous post I talked about how it needed to rally real strong back to .0034 level to give it a good shot at making a breakout type run like it had in the past.
RVGD did exactly what I asked and surged with big volume since then all the way to an intra day high of .017
The .017 price gave an RSI reading very near the 80 range which was clearly an overbought level on the daily charts. By the way, RSI in my past experience is a great tool to use to help determine exit points and maximize profit. Anything between 70 and 90 is a good excuse to take profits.
This entire run began quite early and was motivated by a pretty significant press release about a large revenue generating contract which came out the day before the price peak day.
So this was definitely a good setup. Does it have more to go? I really can’t say for sure. It is possible that RVGD will not build a symmetrical triangle pattern and try another run at .03, but for now it is clear that a lot of energy has been ‘used up’ from this 6 day rally.
From the .0035 level when we first started talking about this penny stock to the .017 intra day high, that equates to a 385 percent increase. Not a bad return at all, and once again proves the point of the amazing returns possible with penny stocks. But of course I would be remiss if I did not also mention the possibilities for huge losses as well.
Timing is definitely priority one in the penny stock marketplace!
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