Wednesday, October 28, 2015

Vera Bradley, Inc. (NASDAQ: $VRA)

Vera Bradley, Inc., together with its subsidiaries, designs, manufactures, and sells handbags, accessories, and luggage and travel items for women of all ages under the Vera Bradley brand. The company offers totes, crossbodies, satchels, clutches, and backpacks bags, as well as baby bags and lunch bags; accessories, such as wallets, wristlets, eyeglass cases, jewelry, and scarves; and travel products comprising rolling luggage, cosmetics, and travel and packing accessories, as well as travel bags consisting of duffel and weekend bags. It also provides home products, including mugs and tumblers, as well as textiles products, such as aprons, beach towels, throw blankets, and comforters; offers apparel/footwear, stationery, merchandising, and gift card products; and licenses its products. The company sells its products through two segments, Direct and Indirect.
Take a look at the 1-year chart of Vera (NASDAQ: VRA) below with my added notations:
1-year chart of Vera (NASDAQ: VRA)
VRA has formed a key support level at $12 (green) over the past two months, which had also been a prior resistance back in July. In addition, the stock is declining against a short-term, down trending resistance level (red). These two levels combined have VRA stuck within a common chart pattern known as a descending triangle. Eventually, the stock will have to break one of those two levels.

The Tale of the Tape: VRA is sitting within its triangle pattern. A short trade could be made on a break of support or on a rally up to resistance. A long trade could be made at support or on a break through the triangle resistance.

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