chart

Holders of VSL who decided to exit today could have saved themselves the trouble, and more importantly, the sheckles, and taken the opportunity to bail at some time shortly after the stock broke $1.32. (see chart) That break was the definitive signal that the run had finished, for the time being.

The stock then performed a text book 50% to 23.6% fib bounce, which provided further opportunity to exit, or, for the more aggressive traders, to short it. (if you knew where it was going to end up of course)

Today we witnessed an inevitable capitulation to 61.8% at $1.15. It came in the form of a solid bounce, which augurs well if you are still long at this point in time. I would not rule out another test of this $1.15 level perhaps in the coming week, however the fact that there was such a robust bounce is quite promising.

As a general observation I find that these 61.8% shakedown style retracements, co-inciding with yearly/half-yearly reports, are usually good buying opportunities. STO in August last year comes to mind.

A close below $1.14 would be not rosy for VSL, so stops just below that level would probably be prudent.

I haven't commented thus far on VSL, because I generally don't post when I have a position in the stock. (very scrupulous I know!)

Cheers