StockWireNews

Low Float (Nasdaq: SFWL) Is On Major Reversal Watch Right Now (Key Oversold Technicals - Explosive Chart History)

December 21st

Greetings Readers,

Look at that!

Back to back, we've delivered a couple of short term stunners.

Most recently, my NYSE American alert climbed from a Friday close of $.2772 to a Monday high of $.3488.

That surge resulted in a blast of approximately 25%!

Before that? A breakout short term runner of approximately 24%!

Now? A new breakout idea. And one that needs to be on your radar immediately.

This one will need to be watched closely for one main reason above all others: volatility.

Volatility can appear when a profile has a very small amount of shares in its float.

With low float profiles, the slightest potential catalyst can be amplified by volatility to draw significant buzz from across the markets.

And with a float of fewer than 7Mn shares, what could this Nasdaq idea have up its sleeve?

Oh... On top of being a low float profile, this could be the mega-bounce idea of 2023.

With multiple technical indicators pointing towards this profile hovering in oversold territory, a healthy reversal could turn this breakout idea into a true head-turner.

How about income growth of over 150+% year over year? Yup, this profile has a bit of that, too!

Drop what you're doing and pull up:

*Shengfeng Development Limited (Nasdaq: SFWL)*

Shengfeng Development Limited is a contract logistics company.

Established in 2001, the Company has developed extensive and reliable transportation networks in China, covering 341 cities across 31 provinces, as of June 30, 2023.

They provide integrated logistics solutions comprising B2B freight transportation services, cloud storage services, and value-added services.

And right now...

SFWL has 3 key potential catalysts to know before we go any further:

#1. A low float of fewer than 7Mn shares means volatility needs to be on watch.

#2. Income surge of over 150% year-over-year may have flown below the radar.

#3. Key technical indicators move to oversold levels (reversal potential could be growing significantly).

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Key Details Of Focus - Unraveling SFWL's Potential Breakout Catalysts

#1. SFWL has a low float under 7Mn shares!

That's right, SFWL is on volatility watch.

Because of it having roughly 6.67Mn shares in its float according to Yahoo Finance, volatility could appear at the drop of a hat with SFWL.

From Tuesday's $2.29 low, SFWL has already displayed the ability to explode 2X to Thursday's high of $5.10.

That's a run of 122% in a blink!

And with a 52-week high over $17.00, there could be a ton of upside potential from current levels.

Now, that isn't to say SFWL will surge to any previous highs, but the potential upside is too great not to note.

#2. SFWL's income erupts in awesome triple-digit explosion!

Recently announced, the company had some huge financial news:

FUZHOU, China, Oct. 12, 2023 /PRNewswire/ -- Shengfeng Development Limited (the "Company" or "Shengfeng"), a contract logistics company in China providing customers with integrated logistics solution services, announced today its unaudited interim financial results for the six months ended June 30, 2023.

Financial highlights for the First Half of 2023

• Total revenue increased by approximately 11.1% to approximately $185.0Mn for the six months ended June 30, 2023 from approximately $166.5Mn for the six months ended June 30, 2022.
• Gross pro-fit increased by approximately 24.9% to approximately $22.8Mn for the six months ended June 30, 2023 from approximately $18.2Mn for the six months ended June 30, 2022.
• Net income increased by approximately 163.3% to approximately $6.5Mn for the six months ended June 30, 2023 from approximately $2.5Mn for the six months ended June 30, 2022.

Mr. Yongxu Liu, Chairman and Chief Executive Officer of Shengfeng, commented, "I am pleased to share the progress we have made in the first half of 2023. Shengfeng Development Limited, as one of the leading contract logistics service providers in China, has been dedicated to providing exceptional logistics solutions to companies in need of storage and delivery assistance. We are pleased to report that our efforts have yielded positive results, reflected in our financial performance. Our total revenue increased by 11.1% YoY (year-over-year), while our gross pro-fit increased by 24.9% YoY. Particularly noteworthy is the growth of our net income, which experienced an increase of 163.3% YoY. ..."

Read the full article here.

#3. Oversold technical indicators suggest...

SFWL could become a reversal candidate near term.

Here's the definition of a "reversal" from Investopedia:

"A reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not typically based on one or two periods/bars on a chart."

Now, here's where things get interesting.

As of 12:00PM EST Thursday, SFWL was displaying these technicals suggesting a potential reversal could be nearing:

• 9-Day Relative Strength Index: 16.60%
• 14-Day Relative Strength Index: 23.66%

When these numbers drop down to the 30% range and lower, they can be viewed as being in oversold territory. While in this territory, they can paint the picture of a profile that is undervalued.

• 14-Day Raw Stochastic: 6.79%
• 14-Day Williams %R: 93.21%

As the Raw Stochastic nears the 10% range and lower and the Williams %R nears the 90% range or higher, these technical indicators may also be viewed as oversold and undervalued.

Keep an eye on these technicals closely as a reversal could be epic from current levels.

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Recap: (SFWL) Has 3 Key Potential Catalysts To Know Now

#1. A low float of fewer than 7Mn shares means volatility needs to be on watch.

#2. Income surge of over 150% year-over-year may have flown below the radar.

#3. Key technical indicators move to oversold levels (reversal potential could be growing significantly).

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Coverage is officially initiated on Shengfeng Development Limited (Nasdaq: SFWL).

As updates come along, I'll get them out to you quickly. Talk again soon.

Sincerely,

Kai Parker

StockWireNews

(Always Remember The St-ock Prices Could Be Significantly Lower Now From The Dates I Provided.)