You Ask, We Analyze: Vinco Ventures Consolidates In This Bullish Pattern

On Thursday evening, Benzinga asked its followers on Twitter what they’re buying at the open on Friday. From the replies Benzinga selected one ticker for technical analysis.

@yoloapes, @RichardJudge17, @IamMrRic, @BanksStocks, @Niko09201, @skrappyd0, @greatlifeishere, @EURO1512, @cristianmc, @raeddwaikat, @wolfhunter1450, bowen5454, @TomAce1183, @AndreasErnesto, @Royal_brx, ChrisRskov, @Minasy85, @FpsSultan, @freedomchasers0, @dead_eye_si, @m_fdez, @NuoFNuo1, @bigdeaportugal, @MoonMonkey615, @KJarsbo, @Spcowins, @FahrenkrugShane, @oryan199696, amchodl, @Chester23747666, @Geccostate, @In_GENIO_MEX, @GoodmanW123, @Blake85013014, @Bruno80907007, @RobertM5746001, @Joetorch1 and @patatattatt are buying Vinco Ventures, Inc BBIG.

@Wisar21459468 asked if there was any update on bringing Vinco Ventures CEO Lisa King in for an interview on one of Benzinga's live shows. Benzinga has repeatedly reached out to Vinco Ventures for another on-camera interview. As of publication time, the company hasn't agreed on a date. 

Short interest on Vinco Ventures has been increasing and after hours on Thursday, was the most mentioned stock on r/ShortSqueeze. Of Vinco Ventures 123.38 million share float, about 27.7 million shares (meaning 21.25%) are held short. The number has increased from 26.97 million in November.

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The Vinco Ventures Chart: Vinco Ventures was trading down about 6% in the premarket on Friday after closing Thursday’s session down about 13%. The stock has been consolidating a 140% run from $2.16 on Jan. 10 to a Jan. 18 high of $5.49.

The stock has now fallen about 30% from the high but after a big move to the upside consolidation in the form of sideways trading or a slight retracement is needed to cool the oscillators. On Jan. 18, Vinco Ventures’ relative strength index hit 80%, which put the stock into overbought territory and was a sell signal for some technical traders.

The retracement in Vinco Ventures has settled the stock into a bull flag pattern on the daily chart, with the pole created in the run up to the new high and the flag printing on the days that have followed. If the flag formation is recognized, the measured move could eventually bring the stock toward the $9 level. Bullish traders should take note, however, that the stock formed a similar pattern between Oct. 11 and Oct. 19 and broke bearishly from it.

Vinco Ventures has two gaps above on its chart that are likely about 90% likely to be filled at some point in the future. The first gap falls between $5.56 and $5.86 and the second gap is between the $9.41 and $9.51 range.

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• Bulls want to see big bullish volume come in and push Vinco Ventures up from the bull flag pattern and into the closest gap above. The stock has resistance at $4.06 and $4.86.
• Bears want to see big bearish volume come in and drop Vinco Ventures down below the eight-day exponential moving average, which will negate the bull flag pattern. There is support below at $3.56 and $3.06.