This stock came up on my stock scanner today. Wednesday August 19, 2009.
A little research of the company from Google Quotes online shows that “the company primarily engaged in business of designing, developing, manufacturing and selling automotive electrical parts, specifically alternators and starters, engine valves, tappets, rods and shafts in China. The Company’s products are mainly used in passenger cars and commercial vehicles and sold to original equipment manufacturers in China. The Company offers over 230 different models of alternators and approximately 150 different models of starters.”
I don’t really concern myself with what companies do though. The price motion on this stock has been impressive. If you knew to buy the stock on March 10, 2009 at 2.10, a tested low, you would have 500% profit a few weeks ago if you had the mind to hold that long.
Here’s what I see now. This could make a big pull back, it already has since making a double top on July 27 and August 3, 2009 at 12.83 down almost 7.5% today. Still, why get too excited about a company that sells alternators after its made you 500%. I don’t know, but if the price corrects properly it could be a trade. Here’s some numbers to look out for if some one else out there decides to get excited- 8.70, 7.435, and 6.05.
Depending on your trading time frame, the 30 min chart has made an abcde corrective wave pattern and may continue with another 5 wave pattern lower to our targets. Although, the MACD is making some divergence on the 15 and 30 min charts that may create a short term bounce. The 30 min wave length signals a possible short term turn could be soon, already being down 8 days from the double top.