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Chart of the Week - July 2, 2007
Vista Land & Lifescapes
VLL Monthly Chart -
Continuing to Trend Higher
charts are courtesy of Metastock
VLL
Daily Chart - Extremely Overbought Condition
charts are courtesy of Metastock
Legend:
blue lines - range for Tsupiteros
dotted blue lines
- range for Position Traders
red lines - important trend lines
| Short-term Traders/Tsupiteros: |
Medium-term/Position Traders: |
| Support - below
6.90 (Stop for long positions) |
Support - 5.40 |
| Resistance -
8.00 |
Resistance - 10.00 |
| Trend - Up |
Trend - Up |
One of only
a handful of surviving third-line issues last week was Vista Land &
Lifescapes (VLL) - formerly C&P Homes, Inc. Last Monday, the stock
resumed trading as it got suspended for two weeks in order for investors
to fully understand the ongoing delisting of CMP and listing of VLL in
the big board. Each share of CMP was exchanged for one share of VLL at
2.46 per share last June 22. The stock immediately opened limit up last
Monday at 3.65. It again opened limit up last Tuesday at 5.40 and only
began real trading last Wednesday between 5.50 and 6.00. As of last
Friday, the stock was already trading at 7.20, which is a new 10-year
high, if you compare it with the historical price of CMP. It is rumored
that the company will be planning a
secondary offering this July. What does technical analysis have to say
with the current movement of the stock?
There is
certainly nothing surprising about the current movement of VLL as it was
clearly seen in the technicals of the chart a couple of months back. In
the monthly chart, the stock is merely following its trend and is
continuing to trend up. Obviously, the stock is no longer at the bottom
of its range in the monthly chart. However, it may not yet be at its
peak. If the stock continues to follow its trend, I wouldn't be
surprised if prices continue to climb and head towards the double digit
levels. The next heavy resistance levels are the 10.00 level and the
16.00 levels. On the monthly chart, I will continue to be bullish in VLL
as long as it holds above 4.00.
On the daily
chart, the stock indicates that it is trading within a very, very strong
uptrend as it continued to form white candles and has been gapping up
for the last couple of days now. However, the stock is now trading in an
extremely overbought position. While Tsupiteros would certainly want to
buy this stock on the next dip, I certainly will no longer buy it at
these levels. The psychological resistance lines such 7.50, 8.00 and
8.50 may be sources of resistances in the short-term. If I were
holding this stock right now, I would take profits on strength right now
and just try to buy it back lower when it corrects. For Tsupiteros, who
prefer to use trend-following strategies, I would suggest to just
continue holding on your position and use a break below 6.90 as your
mental stop. If prices continue to move up today, raise stops to a break
below last Friday's close of 7.20.
Good luck
Tsupiteros and I hope that the good Senator will be able to get what he wants
so that all of us will be happy. :-)
Notes:
Short-term
Traders/Tsupiteros vs. Medium-term/Position Traders: Recommendation
for short-term traders or Tsupiteros are meant to be used by traders
whose holding period are limited to one day to two weeks. Medium-term or position
traders are meant to be used by traders whose holding period are two weeks
to three months. Long-term investors whose holding period is more than
three months should not follow these recommendations.
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