Taking A Close Look At Shengkai Innovations Following Thursday's 34% Move Higher

| About: Shengkai Innovations, (VALV)

Shengkai Innovations, Inc., (NASDAQ:VALV) through its subsidiaries and Tianjin Shengkai Industrial Technology Development Co. Ltd. (Shengkai), is engaged in ceramic valve manufacturing. Its product categories include a range of valves in all industries that are sold throughout the People's Republic of China, to Europe, North America and other countries in the Asia-Pacific region. Shengkai produces a range of ceramics in categories, including gate valve, ball valve, back valve, adjustable valve, cut-off valve and special valve and produce more than 700 specifications that sustain a maximum pressure level of 42 Mega Pascal. It provides a series of services related to industrial ceramic valves, including manufacture, installation and maintenance of general industrial ceramic valves, as well as the design and manufacture of various non-standard ceramic valves as required by customers' special operating conditions.

I couldn't find a reason for the 34% move in this stock on Thursday. However, I can tell you that the stock is a long way from its 52 week high which is around $7.70. For technical traders and investors, there are two important numbers that you need to take note of, and those numbers are the 200 day moving average @ $2.31 and the 50 day moving average @ $1.61.

Bear in mind that in mid February, the company guided below estimates. The Company at the time said it expected revenue to be approximately $5.5 million. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $10.5 million for the third quarter of 2012.

Unless this chart breaks above one of the technical levels, there might be nothing to look at here.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.