Taking a voyage with Vonage

• Posted by Greg Harmon
• on August 25th, 2015

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 global telecom space is Vonage ($VG) and their 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.

What makes it interesting is the potential reversal candle that printed Monday at that 50% retracement, and how it is being confirmed to the upside Tuesday. Notice that the RSI had pulled back under the mid line and is also turned back higher. This 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 is a great reward to risk ratio. I bought some at 5.81.

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