PUMP AND DUMP TO REPUMP TO HIGHER HIGHS
What a interesting day of trading, and want to share my thoughts on BIOF as honest and clear minded as possible. Early morning I stated to sell your position due to the cost of cruel oil and was falling and would reduce the demand for "ethanol" over time. Now cruel oil closed green today and many investment firms are placing cruel oil to a hold and buy. This means cruel oil will slowly rise over time and won't reduce the demand for ethanol as all sorts of energy are intertwine with each other. Interesting notes to keep in mind is the future for oil, corn, and all agriculture are up. This means ethanol will increase in demand and have BIOF go back up. With more information to speak about BIOF, IMO is a strong buy now.
According to bartchart; on Tuesday it was on a 57% buying signal, Wednesday 62% buying signal as of now Thursday its at 72% buying signal. I expect BIOF to slowly regain its value this week and next 2 months. During the whole day we only traded 666.45k in volume showing that many people are still on the sideline watching this stock to stabilize before going in. The previous day we traded with a volume of 1.3m but comparing both days today there was more people on the bid buying up cheap shares and many more people holding expecting BIOF to bounce.
I see this bounce happing tomorrow. The bounce won't be that large but gradually as we enter winter season. In most states in America we can see the demand for not only ethanol for heating but see the rise in natural gases going up due to demand. Winter is consider the months of September/October/November and we are about to reach our coldness months in October and middle of November. It's not only in America but all of the northern sphere of the global. With also heating demand going up we can also see cooling demands going up in all of the southern sphere of the global since its technically summer time. Keep in mind that BIOF sells ethanol to "3rd party distributors" meaning the main focus of BIOF is the production of ethanol than selling it for full market price. Which makes BIOF a really good buy at these low prices. I understand that BIOF doesn't have the perfect charts with up and down and not being stable but I didn't account for the main fact that BIOF is a seasonal stock. Look at the charts for months of sep/oct/nov of years before you always see a higher demand vs any other season. With that in mind I say trade the stock till the end of Nov and call it a day. I have a feeling this stock will gap tomorrow as many more investors are more confident that the bleeding has halted and the buying has began.
Like always happy trading.
AI
