For those that spend time reviewing charts frequently, it is likely that you come across stocks that return to a price level repeatedly (like a magnet) – whether from above or below. I came across one such stock today VRA (Very Bradley). Here is a Daily chart:
As you can see in the chart above, price is once again saying high to the 33 price level. A disappointing earnings report this past week brought in a TON of selling and it closed the week sitting very vulnerable.
A critical point here for the stock. Pullback buyers will look for a hold and a bounce. Shorts will pounce on any sign of further weakness (if no current position already).