SmartHeat Inc. (NASDAQ:HEAT) – Technical Buy Signal

HEAT - chart" src="http://stock-tipper.com/wp-content/uploads/2011/06/HEAT01.png" alt="" width="479" height="278" />

HEAT - Google Finance" href="http://www.google.com/finance?q=NASDAQ%3AHEAT">SmartHeat Inc. HEAT is a Chinese based company that manufactures and sells plate heat exchanges. I have not done any fundamental research on this stock and I am very wary of Chinese based companies. Yesterday's 23% gain to a close at $1.82 did catch my interest though.

That 23% gain prompted me to check the chart and it looked very good!

Above, you can see the updated chart that shows a very strong reversal being made. After a long slide over the past several months, a strong support base seems to have formed at $1.50. Yesterday's gain was also backed up by a strong surge in trading volume as well.

The technical indicators from the chart alone now suggest that a reversal is underway. This presents as a possible trading opportunity.

Please do your own due diligence.