September 1, 2016

Stock Alert and Chart Analysis: SPU


  In these stock alert and chart analysis posts, I want to highlight a security that is on fire for some reason. Either the security's chart looks amazing and/or social media is going nuts about it.

  If you need a technical analysis refresher click here, and if you want to learn how I trade breakouts click here.

  Okay, let's get to work!

Stock: SPU, SkyPeople Fruit Juice, Inc.

Long-term Weekly Chart Technical Analysis:

Ladies and gents, welcome to pure speculation. Day traders and short-term institutions are driving the price of this stock right now. This stock is moving almost purely on emotion and technical analysis. Weekly chart shows a strong bounce near important support around $6. However, tomorrow will determine how high this stock closes and whether a gigantic wick is present. Conventional wisdom suggests this bull trend continues, but good luck trading this neurotic and bipolar nutcase of a stock. No thanks.

Long-term Weekly Chart Gameplan:

Stick with this trend until it bends--i.e. bull trend for this week. But be quick to change your thesis if the trend breaks on a lower timeframe because this chart is way too volatile.

Short-term Daily Chart Technical Analysis:

Short-term Daily Chart Gameplan:

I wouldn't touch this stock with somebody else's money. Unless you like crack cocaine, avoid this stock like the plague. It is way too volatile--unless you can watch every single second tick of the chart and maintain a calm state of mind. Even then, you should probably avoid this batshit crazy stock.

What are your thoughts on SPU? Let's discuss it in the comments below. Many minds are always better than one!


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