This company has very popular keywords - China and Solar.  In recent half year this stock was a wining 3 time bagger and now it is 2 times looser . What do i expect from this stock tomorow?

Company profile
LDK Solar Co., Ltd., through its subsidiaries, manufactures and sells multicrystalline solar wafers to the manufacturers of solar cells and solar modules in the People’s Republic of China and internationally. It offers multicrystalline solar wafers between 180 and 240 microns in thickness. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. In addition, it manufactures polysilicon materials, which include ingots and polysilicon scraps. The company was incorporated in 2005 and is headquartered in Xinyu city, the People’s Republic of China.
Elliott Wave and Technical Analysis

While this is new company established just in 2005 it is hard to get general Elliott wave picture, but recent LDK price chart suggest that now stock is in a downtrend. Finished uptrend could be nice minor wave 1. Today I see 76% retrace from minor wave 1 highs. This is not typical retrace percentage, but it hit quite strong support at this price level.

 
Just look at the MACD chart – I see clear divergence between histogram and MACD line that suggest possible trend reversal. We should wait a week or so to confirm any trend reversals, but at this moment let’s wait if support holds. 

Conclusion
 LDK is down trending and short interest is rising very fast. Where is a lot of speculative articles about this company so be careful about future manipulations.

Tags: elliott wave, LDK

This entry was posted on Sunday, October 28th, 2007 at 9:18 pm and is filed under China. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.