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Underground TradingCutting edge information and analysis on day trading, active trading and short term trading of the US equities markets utilizing converging time frame technical analysis trading methods |
Seed Momentum Breakout
SEED (Origin Agritech http://www.originagritech.com) traded on heavy volume on Friday 1/4/07 to close post market session at $9.90. There was no news but the significance was the huge volume on a day where the markets get decimated. The weekly close triggered a weekly and monthly mini pup breakout. SEED is a Chinese hybrid seed producer with with a portfolio of over 100 products. This company had revenues of $58.82 million in Q3 of 2007 with $6.78 million in income with 747 employees. The company has set up distributions channels with India and Vietnam in addition to China. The smaller competitors have been forced out due to a government mandate which is what caused the revenue pullback in the 3rd Q. Here's a good link to read: http://www.taipanfinancialnews.com/transcripts/20071003trading.html

Longs from upper $9s for a breakout initially to the $10.50 x 11.50 levels weekly upper bbs with upside to the monthly upper bbs near $13.75. Stops kept on breach of $8.70. This one may hit the target levels on Monday/Tuesday depending on volume and overall market, so it's a momentum play. This one is not for the faint of heart as it's a very speculative momentum play. The float is also 30% short which should fuel the squeeze. Good Trading!
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Why I traded the stock ME today. I had it on my list fr [read more]
NOTE: Please click on the charts below to enlarge them if [read more]
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