VLN Technical Analysis - VELAN INC

Technical Rating and Analysis

Overall VLN gets a technical rating of 5 out of 10. In the last year, VLN was a medium performer in the overall market. We are getting mixed signals now in both the short and medium term picture.

Warning: VLN has an average volume of 8339 traded shares per day. This is quite low and it might be dangerous to invest in illiquid stocks.

The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.

VLN is one of the better performing stocks in the Machinery industry, it outperforms 86% of 24 stocks in the same industry.

VLN is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so VLN is lagging the market slightly.

In the last month VLN has a been trading in the 15.01 - 16.99 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

When comparing the performance of all stocks over the past year, VLN turns out to be only a medium performer in the overall market: it outperformed 69% of all stocks.

Volume is considerably higher in the last couple of days.

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Technical Analysis

Relative Strength

ChartMill Trend Indicator

Simple Moving Average

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Weekly and Daily overview Charts

Setup Rating and Analysis

Although the technical rating is only medium, VLN does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 15.68, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for VLN in the last couple of days, which is a good sign.

Behavior of large players is measured by the Effective Volume indicator. This indicator inspects the 1 minute timeframe looking for high volume transactions.

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ChartMill Technical Ratings

Pocket Pivots

Bull Flags

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Support and Resistance Analysis

13.43

17.97

When analyzing the support we can see 4 important areas.

A support zone ranging from 15.18 to 15.68. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
Support @14.55 from a trend line in the weekly time frame.
Support @13.99 from a horizontal line in the weekly time frame.
A support zone ranging from 13.57 to 13.64. This zone is formed by a combination of multiple trend lines in the daily time frame.

4 important resistance areas can be observed.

A resistance zone ranging from 15.73 to 15.85. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
Resistance @16.30 from a trend line in the daily time frame.
A resistance zone ranging from 17.40 to 17.40. This zone is formed by a combination of multiple trend lines in the weekly time frame.
A resistance zone ranging from 17.79 to 17.79. This zone is formed by a combination of multiple trend lines in the daily time frame.

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Technical Indicator Signal Analysis

The Technical Rating and Setup analysis above combine different indicators and trends in different timeframes. Individual signals from indicators may give more contradictive signals and should always be interpreted in the more global context.

Indicator	Value	Signal	Comment
ChartMill Long Term Trend Indicator	UP	POSITIVE	The long term trend for VLN.CA is up.
ChartMill Short Term Trend Indicator	NEUTRAL	NEUTRAL	The short term trend for VLN.CA is neutral.
ChartMill Relative Strength	69.81	NEUTRAL	VLN.CA is not amongst the best or worst performers on the market.
Simple Moving Average/SMA (20)	DOWN	NEGATIVE	The current price of VLN.CA is below a declining SMA(20).
Simple Moving Average/SMA (50)	UP	POSITIVE	The current price of VLN.CA is above the rising SMA(50).
Simple Moving Average/SMA (200)	UP	POSITIVE	The current price of VLN.CA is above the rising SMA(200).
Relative Strength Index/RSI (14)	50.6	NEUTRAL	The RSI value for VLN.CA is a neutral value.
Moving Average Convergence Divergence/MACD (12, 26, 9)	-0.04	NEGATIVE	The MACD value suggests VLN.CA has a negative trend.
Stochastics (14,3)	35.52	NEUTRAL	The Stochastics value for VLN.CA is a neutral value.
Average True Range in percent/ATR (20)	2.67	MEDIUM VOLATILITY	The ATR as a percentage value for VLN.CA suggests some volalility.
Average Directional Index/ADX (14)	17.27	NEGATIVE	The low ADX value for VLN.CA suggests a weak or negative trend.