Another Huge Base
- Posted by Frank Zorrilla
- on July 17th, 2013
$PVA is another stock similar to $QSII which we wrote about last week that has a huge base that normally leads to a huge move if and when stock breaks away from the base. You can see in the chart below the huge base in $PVA, but notice how it has tighten up relative to the action of the last year and how the 50 day as lent support along with the ascending trend-line.
Here is the trade; long at $5.00, stop $4.70, with 14% of the float short any break out can lead to a short squeeze.
Penn Virginia Corporation (PVA) is an independent oil and gas company engaged primarily in the exploration, development and production of oil, NGLs and natural gas in various domestic onshore regions of the United States, with a primary focus in Texas, and to a lesser extent, the Mid-Continent, Mississippi and the Marcellus Shale in Appalachia.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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