After debuting on December 8th, 2010, E Commerce China Dangdang Inc (NYSE:DANG) spiked from an opening price of $24.50 to a high two day later of $34.46. Since then, it has tumbled all the way back below the opening price to a low today of $22.90. This area is beginning to get attractive for a secondary pop in the stock and should be watched. It is an extremely high risk stock but the fall from $34.46 to $22.90 represents a 33.50% drop. A solid bounce could take this stock back to the $27.00 range where it would meet major resistance. DANG debuted with Youku.com Inc. (NYSE:YOKU) which also ran dramatically higher. Since then, YOKU has stabilized while DANG has continued to decline.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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