Heading to Vitamin Shoppe for a Move Higher
There is a big debate about whether vitamins, or supplements, really add any value. From a science perspective I really do not know enough to add to the conversation. But from a cash flow perspective vitamins look like they could be pretty healthy for you.
The chart above of Vitamin Shoppes ($VSI) shows a harsh pullback over the first half of January. This brought the price of the stock back to the lower end of a range between 38 and 50 that it has traded in for about a year. What makes it interesting is the price action since that time.
The small bounce and then pullback has set up a harmonic Bat pattern. As it moves above point B it is triggering towards a Potential Reversal Zone (PRZ) to near 48, the top of the range. Not even a range break but a 10% move. The momentum indicators are supporting the upside with the RSI near the bull zone at 60 and rising and the MACD already rising and bullish.
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