After a steep decline at the end of 2014 shares of Daqo New Energy Corp
. managed to retrace above the strong USD 23.65 level. While reversing at the bottom there was something of a head and shoulders
pattern, with the boundary at USD 29.15. The stock fell to an intermin support level
of USD 28.50 where it could venture to break out of the pattern. It makes sense to launch long positions above that mark with a pattern-size target at USD 41. On its way to this target, the stock will need to breach a substantial line near USD 37.70, so investors are advised to limit their movement to this trend. After this line is crossed it will be possible to buy in again with a longer-term target of USD 56.75.
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