Stock Chart Analysis FEED
AgFeed Industries, Inc. (Public, NASDAQ:FEED)
FEED has been on my radar since I traded it successfully back in April. I've been able to trade it a few times on the breakouts for quick gains. It looks like it is setting up for another potential move higher, and I will be looking to get long if it cooperates.
FEED has been progressively trading higher, building lateral trading ranges on each breakout. After gapping strongly off the March lows, it traded in a triangle / pennant for about a month. It then surged higher on an increase in volume and settled into another trading range a few weeks later. This trading range lasted about a month again, and FEED once again surged higher in late May. With a 700% move from low to high, FEED was due for a breather. It has been consolidating the last breakout for the past two months, actually retracing the entire breakout. It has fallen out of many traders radar, as volume has died down. It just snuck over the declining trend line that was framing the correction and has been trading in a tight range over the 20-day moving average. If it can clear this small trading range to the upside, then it could make a quick move to test the top of the pattern. With a stop below the trading range, this would offer a risk of about 50 cents for a 2 dollar move. These are the type of setups I look for, and is one I will be watching over the next few sessions.
Good Trading,
Joey
blog comments powered by Disqus
