After hitting the first target yesterday for a quick 5.5% gain, VHI (Valhi Inc) pulled back to the 5.50 former resistance level, which is now support, before moving sharply higher. Volume on yesterday’s move was extremely high & volume continues to track well above average so far today, which helps to set this most recent counter-trend rally apart from the previous rallies that proved fleeting.

Although subject to change as the stock trades going forward, my current preferred target is the 7.75 resistance level (with my actual sell order likely to be place 10-15 cents below). Now that the 5.50 breakout level has been successfully backtested, consider a stop slightly below that level. The stock is also currently challenging this downtrend line resistance shown on this 4-hour chart. A break above would likely send prices moving quickly towards the previous reaction high of 6.80.