Sino Agro Food Inc (fka SIAF)

[Viking John]

TA Review for SIAF.........

We had the breakout. The breakout lasted from 9/5/14 and finally broke down on 10/1014. The rise during that month was unsustainable. It was incredible with huge RSI's breaking records. It was a very powerful moive and I am glad I was able to be part of it. I truly enjoyed the experience. Normally a strong stock rides above its simple moving average and the simple moving average acts as lines of resistance. This breakout was so strong that the stock rose and stayed way above its simple moving average and never came close to using it as resistance. Then the markets became volatile effecting many stocks and on 10/10/14 the stock plummeted well below its 20 day sma. I sold that day. I watched in fear as the stock plummeted 30% in just a couple of hours. I sold that day. I didn't know why the stock dropped so fast at the time. I thought there must be some really bad news. In the end there was no news. It was just the inevitable correction from that very strong move. At the time the markets were selling off so the correction caused the crash in the stock. But the very powerful move was the fuel.

Now SIAF has moved into a more sustainable move. After the correction SIAF recovered and started to move back up. Right now SIAF has a pretty chart. It is not moving up so fast that it can't sustain the move. It is just riding above the 20 day simple moving average. The 20 day is acting as resistance. Every time now that the price falls towards the 20 day sma it just bounces. It then rises a little above and falls. The 20 day is well above the 50 day and the 50 day is well above the 200 day. This produces a very pretty chart and presents a very good prospect for a nice long term uptrend. Some very good future news could also produce a nice bounce much higher too. With out news I suspect the price to just continue along the path just above its 20 line like it is doing now.