Well, this week hasn’t been too fun for the majority of portfolios. The broader markets appear to be continuing their slide as we head into Friday’s session, with the S&P 500 posting a negative performance for the third time this week on Thursday, crashing right through the 100-day SMA. While it does appear there is some negative sentiment out there in the equities markets, when you look at individual securities by themselves rather than in a basket, one can actually pick some winners, even during a week like this!
As you probably know, we use some rather extensive screeners through our watchlists to find some solid picks for our readers on a daily basis. Following Thursday’s close, after some serious sifting, we were happy to find a handful of outperformers that met our criteria. After looking at the technical setups of these few securities, one in particular rose to the top; Voxtur Analytics Corp. (TSX-Venture:VXTR).
Voxtur Analytics Corp. is a transformational real estate technology company that is redefining industry standards in a dynamic lending environment. The company offers targeted data analytics to simplify tax solutions, property valuation, and settlement services throughout the lending lifecycle for investors, lenders, government agencies, and servicers. Its proprietary data hub and workflow platforms more accurately and efficiently value assets, originate and service loans, securitize portfolios and evaluate tax assessments. The firm serves the property lending and property tax sectors, both public and private, in the United States and Canada.
Voxtur Trading Strategy:
Due to the strength of this stock’s uptrend and seeing the recent momentum this week as shares went onto close up at $1.08/share (+5.88%) on Thursday, in order to not miss out on any continuation of this surge, we like the entry at Friday’s open.
As far as resistance is concerned, there really are only two key levels in the picture since the stock has rallied so much over the course of two years. Up first we have the recently made December peak of $1.26. Following this level is the 52-week high of $1.43.
After the stock breaks through these levels, it really has some room to run, but in order to not get carried away and set unreasonable expectations, we have set our price target at the mental level of $1.50/share.
For the support side of the equation, luckily a few of the lagging moving average are somewhat near current levels, so we have decided to use two major SMAs for this uptrending stock. Up first is the 50-day SMA that is currently at the mental level of $1.00. Immediately following this is the 100-day SMA at $0.97. Anything below these two metrics could be an indication of a trend reversal, so in order to avoid ruin on this position, we have set our stop loss at $0.96/share.
With these risk parameters in place and using Thursday’s close of $1.08 as the proxy entry price, this play is shaping up to have +38.89% upside while risking -11.11%. We anticipate this move occurring within the next five to six months.