Since November 2009, China Agritech (CAGC) moved higher from $10 range to $30 by March 2010. Since then, it dropped more
than 60% and closed at $11.17 on June 7, 2010. Now that CAGC retraced back where it started back in November 2009, which direction will it take?
than 60% and closed at $11.17 on June 7, 2010. Now that CAGC retraced back where it started back in November 2009, which direction will it take?
In looking at its daily chart, there is an downward triangle forming with a strong support at around $11. This support in some ways coincides with the support for S&P 500 at 1040 range. The last time CAGC reached near $11, it immediately rallied into high $13 range, more than 15%. At the same time, S&P 500 rallied as well from 1040 to 1100s. I recommend keeping a close eye out on S&P 500’s support level at 1040. If S&P 500 fails to break lower again, then we should see CAGC and S&P 500 make another rally.
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