One under-$10 name in the chemical manufacturing complex that looks to trigger a major breakout trade is BioFuel Energy (BIOF), which produces and sells ethanol and its co-products (primarily distillers grain), through two ethanol production facilities located in Nebraska and Minnesota. This stock has been crushed by the sellers during 2012, with shares off by over 75%.
If you take a look at the chart for BioFuel Energy, you'll notice that this stock has been destroyed by the sellers during the last six months, with shares dropping from over $18.40 to a recent low of $2.07 a share. During that monster move lower, shares of BioFuel Energy have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the stock has started to reverse that downtrend during the last few weeks, and some large upside volume spikes are hitting the chart.
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