The mobile market has become the the new front line for all businesses. And the global telecommunications field is no exception. One company that is battling in the telecom space is Vonage Holdings Corp. (NYSE:VG) and its stock looks ready to take off to the upside.
The chart below shows the stock price broke out of a long sideways consolidation zone at the end of July. From there it jumped 28% to 6.69 in 2 days before settling into a new consolidation. The market downturn has now reset some of the momentum and pulled the stock back 50% of the leg higher.
The Technicals
What makes it interesting is the potential reversal candle that printed Monday at that 50% retracement and how it was confirmed to the upside Tuesday. Notice that the RSI had pulled back under the mid line and has also turned back higher. That gives both a target on a Measured Move to 7.74 and a natural stop level under 5.64. Risking about 20 cents to make $1.90. Now that's a great reward-to-risk ratio.
I bought at 5.81.