Quantcast Seed Momentum Breakout
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Underground Trading

Cutting 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

Posted on 01/06/2008 15:18:06 | Link | Post Comment

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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