China Stock SPU Sky People Fruit Juice Appears ready to reach for the Sky

SPU Sky People Fruit Juice appears to be in breakout mode at the moment or at least very close to it.  The stock has consolidated in a beautiful double bottom formation where the second bottom never managed to touch the first price bottom, a bullish sign.

SPU trades quite thin as there are very few shares tradable in the float.  Two days ago it made a high volume swing high near the 8 range and I suspect a move back up there is coming soon.

Above the 7.20 level resistance is almost non existent and we could see SPU trend higher gradually for the month of March to a first target of 10.

So far SPU is a well behaving China stock with decent growth prospects and good margins.  SPU has a habit of trading to a high point and then selling off near the end of the day.  So it is a somewhat cumbersome uptrending trading personality.  Having said that, as long as price can hold above the 7.34 level it remains a buy and hold in my opinion.

If you haven’t noticed yet, I can tell you with zero doubt that China Stocks are on fire, literally.  Many are trading in well developed uptrends and nice consolidation patterns.

They are not all created equal however, some are much more difficult to trade and the patterns are not so clear.  So despite the strength it is still a ‘stock pickers’ market for China Stocks in my opinion.

Posted in China Stocks, Stock Picks
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