Origin Agritech Limited (NASDAQ:SEED) was formed in Beijing in 1997, and began operations in 1998. The Company is the seed Company in China, specializing in the research, development, production, sale and distribution of hybrid crop seeds in China, currently including corn seeds, cottonseeds, and rice seeds.

It has sales organization consisting of 137 persons that oversee all aspects of the distribution and retail sale network and promote the Company sales to the expanding distribution chain. It has established a nationwide distribution network with over 2,400 first- level distributors and over 50,000 second- level distributors and some retailers. The distributors in turn sell to the retailers and retailers sell to the farmers. (Source: Bigcharts)

This play came up on our radar as the next momentum play running on all four cylinders. The stock has double bottomed over the past three months and appears to have the energy needed to bring you handsome returns over the next few months.

I like this play because of the strong price support and long-term upward trend. In looking at the two-year weekly chart you can see evidence of a breakout from its symmetrical triangle formation.

Source: Bigcharts

In viewing the chart more closely on a one year weekly the MACD and DMI are giving the signal to go in for the kill and capture the sweet spot of this new trend.

Source: Bigcharts

Our Recommendation: Buy shares of Origin Agritech Limited (SEED) at or near $13.45 and place a stop loss of 5% below your purchase price.