Current trade analysis: Swing Trade $REDF

Hi all,

It has been a fantastic week in the market with many, many winners. Today I would like to outline a swing trade that I currently have a position in. Checkout where i get my trade alerts from and how i learned to trade HERE.

Rediff.com India

$REDF is a small Indian company with a low float (13.8 M) so this stock can move fast when volume comes in! $REDF provides online business and consumer offerings in India and to the global Indian community. The Company’s Websites in India and the United State consist of communication services, such as e-mail, news and information channels, community features, including a social networking platform, photo/video and music sharing capabilities, local search, and mobile and online marketplace services.

With Indian stocks heating up, $REDF provides an exciting opportunity to get a piece of the action! Rediff.com is a market leader in this sector and in my opinion is likely to be a superb growth stock over 2014.

The chart below shows my buy in price at $2.7 about 9 days ago. This daily chart shows the price trending up the 4 day ema nicely (blue line)! The large bullish candle 3 days ago was mainly due to a negative Seeking Alpha article which was published. This loaded the stock with ignorant short sellers who have since been squeezed, causing the large price increase.

REDF_swing_websiteMy hope is that this is just the start of a long period (>2 quarters) of strong growth for $REDF. As usual do your own due diligence before investing or trading this stock!  I will be using the 4 day ema as my stop loss for this swing.

I love stocks that break out of a long, tight base (in the chart above you can see the base then the breakout in May). This combined with the float, undervaluation, India stock theme and the positive price action make me believe that REDF could just be getting started!

For more information on the stocks i discuss on this website please visit Super_Trades website

Russell

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