I love bottoming patterns, and Vitamin Shoppe ($VSI) is forming a bottom pattern that is looking pretty healthy!
Of course, we’ll need to wait for confirmation — but let me show you what I’m talking about.
Since then — price has pushed 45% higher — with an INCREDIBLE move.
That’s why I love bottoming patterns — once sentiment changes on a stock via news catalyst or earnings catalyst — we’re off to the races.
And that’s what happened with $TZOO. Explosive earnings. Explosive move.
Which brings me to Vitamin Shoppe.
$VSI is putting in a very long base after a dismal -60.87% year. And it’s these small range bases at the bottom of long downtrends that make me pay attention.
Why? Because any piece of news down here can get the shorts scrambling to cover and can get new longs coming in.
While it may sound bad that $VSI has traded down -60.87% this year — that’s where bottom patterns set up — and that’s where we look for them — the exact opposite of where we find those Retail Rockets making new highs!
So yes, these are literally Bargain Basement Stocks — and I love them!
Here’s the $VSI chart —
As you can see we have this huge long basing pattern from between $5.50 on the upside and $3.50 on the downside.
That’s what we want. It’s where the bulls and bears are battling it out.
What we know from this is that once either side wins — we will be in for a wild ride.
In case you are curious — here’s a zoom out on the $VSI chart showing that long downtrend — and is also showing us butting up against the 200 day moving average — a huge trend marker.
Like I said — we need that confirmation. And to be honest, I don’t always wait for it — which sometimes works and sometimes finds me getting ROASTED.
But what can you do.
As always — happy shopping — and good luck out there!