VirTra Systems has been trading down into oblivion in the past month. In the fall, the company announced several major events which included a 17 unit order for the Mexican FBI and a very favorable conversion program for debt reduction. The stock broke out above the $.41 level, which had acted like a brick wall for months. I thought we were home free.

Unfortunately and very disappointingly, the company has had nothing positive to say for weeks, and the stock has slowly been drifting down into oblivion. Based on everything I heard out of the company, I thought the news flow would pick up rather than slow down.

This turn of events begs the question- Is this company now a problem?- or is this an buying opportunity? It is human nature to jump in when the news is great and the stock is trading up. Sometimes, the most money is made by those who buy when the stock is quiet and no one is paying attention.

If you read Monday’s edition on Fibonacci Retracements, you might be interested in the current chart of VTSI:

I drew both a trend line and Fibonacci retracement levels going back to the 2004 low of $.20. Note the stock is come down almost perfectly to both the trendline and the high probability 61.8% retracement level. Technically, for those who like to buy when they are quiet and no one wants them, this stock is trading at the perfect entry level.

Since I haven’t heard a word out of the company in weeks, I have no idea if the news flow will pick up and if the company is working on delivering its big order to the Mexican FBI. If you have faith, now is the time to accumulate based on the chart.