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by Koos van der Merwe
A cup is in the making.
Position: Accumulate
Koos van der Merwe
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
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CUP WITH HANDLE
A Cup Of Security With Vasco Data
05/18/05 01:54:28 PMby Koos van der Merwe
A cup is in the making.
Position: Accumulate
| Vasco Data Security International design, develops, markets, and supports identity authentication products that reduce the risk of loss from unauthorized transactions. It achieves this by validating a person's identity using a one-time password and obtaining a legally enforceable digital signature, if needed, for financial transactions. The company's products are currently used in a variety of applications including Internet banking and Internet brokerage, as well as e-commerce applications dealing with the web. Figure 1 shows how the price has moved up strongly from September 2004, when it was $1.80, to reach a high of $9.12 on February 12, 2005. As shown on the chart, from that date it formed a cup, with its base at $5.95. This immediately suggests that should the price break above $9.12 in forming the handle, it would give a buy signal, with a target of $12.29 ($9.12 - $5.95 = $3.17 + $9.12 = $12.29). |
|
| Figure 1: A secure cup and handle in the making. |
| Graphic provided by: AdvancedGET. |
| |
| The relative strength index is showing weakness, suggesting that the "handle" to the cup could take time to develop and even fall to test the resistance at $7.62 before rising. |
| Volume appears to strengthen as the price strengthens, and weaken accordingly when the price declines. This is a sign of strength, suggesting that as the price falls, sellers dry up. Vasco is definitely a share to add to your watchlist for a buy when the price breaks above $9.12. |
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
| Address: | 3256 West 24th Ave |
| Vancouver, BC | |
| Phone # for sales: | 6042634214 |
| E-mail address: | petroosp@gmail.com |
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Date: 05/18/05Rank: 4Comment:
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