What to Look For and What to Look Out For: Look for the stock to confirm a new technical buy signal by breaking out and closing above its $36.19 pivot point with gains on heavy volume in the coming days and weeks. Remember that buyable breakouts require three important components: the stock must clear its pivot point with considerable gains, those gains must be backed by at least +50% above average volume, and the overall market environment must improve and produce a new batch of leadership.   As always, it is of the utmost importance to sell a stock if it drops 7-8% below your purchase price. The small supply of outstanding shares could lead to dramatic price volatility, especially if the institutional crowd rushes in or out. Also, the market conditions are still somewhat questionable, largely due to the lack of leadership, which suggests this is not an ideal environment conducive for accumulating shares. This high-ranked leader should remain on an active watchlist and could be considered as a new buy candidate in the event it closes above its pivot point on the necessary volume needed to trigger a technical buy signal.

Technical Analysis:  VIVO is currently forming the right side of its base. The stock is now trading very near its pivot point on very healthy volume patterns. At this point, there has been virtually no sign of institutional selling (distribution) which is a healthy sign. Remember that it is imperative to see volume surpass the necessary threshold needed to trigger a technical buy signal as the stock trades and closes above its pivot point. Until then, this high ranked stock should remain on an active watchlist.