VRX, Valiant update.

This is one that keeps going and going, mostly sideways. Here are the old charts;

VRX vrx apr 2011

This wedge would allow for a top near $57, but this stock appears propelled by financial engineering and the love of our largest brokerage firm, even if it has exceeded even their (then) lofty targets. $55 seemed like a good top. Perhaps not;

vrx jul 2011

For about 4 months this stock has done nothing. Except it has gone from one side of the channel to the other. Usually it does not pay to short a dull market. this would certainly be the case if this were a 4th wave triangle which targets a price of about $56/57, right on the target. Keep a tight stop on this one and if it does get to $55+, sell it. Both the RSI and MACD do not look very promising.

In EW terms the original chart may have had a 1-2 too many. Taking it out puts you in wave 4 of the entire sequence. If this is a triangle it has to be a wave 4.