FUQI just announced that it has accounting irregularities for the past few quarters and that sent the stock plummeting by more than 30%.
I miss the boat when FUQI breakout of the kumo resistance and did not partake in its rise from $6 to about $32.
Having said that, FUQI represents a very good case study for Ichimoku as it has went one round of bullish signal and bearish signal.
Let’s have a look at the Ichimoku chart.
Family Dollar Stores has a little gap up yesterday and may be poised to break out of the kumo resistance on the Ichimoku Daily Chart.
Support is at 28.71 with Resistance at 29.7
The chart formation also seems to suggest a cup-and-handle forming.
Looking at the flat leading kumo, it is sugesting that price movement may be fairly range bound between $29 and $30 in the short term.
This is further supported by the Weekly Chart which shows that the price is trading inside the kumo now with a resistance at around $30.
This little darling that has rallied up so fast is finally breaking down.
The bearish Tenkan sen Kijun sen cross is sighted and it is now just sitting above the kumo for support.
Possible support at $26 and $24.