Put Diamond Foods Back on Your Radar

• Posted by Greg Harmon
• on December 19th, 2013

Diamond Foods, $DMND, had a very bad spell in 2011 when they apparently could not cont how many nuts they were selling. The stock lost 75% of its value in less than 3 months and eventually bottomed over 85% lower.

But since then it has based between 15 and 26 for 2 years. If we focus on the most recent activity by zooming in on the chart below, it has been in an uptrend since the beginning of 2013. The entire 2 years makes for a pretty good saucer pattern, and is nearing a key level at 26.60. Above that level a gap opens up to 35.80. It may take some time to get there and to trigger but a gap fill is a 35% return for this thrown to the curb stock, and that would be just the start of a recovery.

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