SkyPeople Fruit Juice Inc. SPU tests February 8th swing on 54% more volume

SPU20100226

SkyPeople Fruit Juice today tested its February 8th 2010 swing high on 54% greater volume which is a bullish sign that it should eventually be exceeded.

Yesterday SPU gained about 12% and so I do not consider it unusual to get a pull back today especially since SPU drove right into previous resistance.  Only giving back 1.85% today given yesterday’s big move is an encouraging sign.  SPU has been in a consolidation range since mid January 2010 and also recently sort of double bottomed near its 50 day moving average.

The volume and the price reaction in this area is a short term good sign.

SPU still needs to prove that it can break and hold above 6.60 before it can be said that a new uptrend leg is beginning.

For now I think SPU is worth keeping an eye on as many China stocks seem to be behaving very well lately.

Posted in China Stocks, Stock Setups
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