Who doesn’t love a recovery play?
Well, this one may not exactly be a recovery, as the recent correction was far from a crash.
However, the price action definitely seems to be improving in VA after a multi-week descent. After failing at the $45 area at the end of December, and then the $43 area twice in January, price slid into the $32 area in early February. One modest bounce and pullback later, price again tested that same zone and held it.
Since then, we’ve seen a solid bounce and now some basing is taking place. Earnings are behind us for the most recent quarter, and now a push through the $38 area could invite a return to higher altitudes, namely $43 and $45, respectively.
Here’s a chart:
This is certainly one worth keeping on the radar.