Luda Technology Group Ltd. (AMEX:LUD) shares are trading lower Thursday morning. The move appears to be a natural correction. It follows a massive rally during Wednesday’s session. Traders are likely taking profits after the stock gained over 24%.
Major Tender Win Details
Luda on Wednesday announced a subsidiary won a significant tender. The award comes from Shangdong Yulong Petrochemical Co., Ltd. The contract supports the Yulong Island Refining and Chemical Integration Project. This framework agreement covers medium and low-pressure stainless steel flanges.
Financial Impact of the Award
The total contract value exceeds 160 million Chinese yuan (about $23.47 million). Management believes this award enhances financial performance. Luda generates the majority of its revenue from its People’s Republic of China (PRC) Manufacturing segment.
Based in Hong Kong, Luda manufactures stainless and carbon steel products. It operates a factory in Taian City, Shandong Province.
Technical Analysis
Luda is still trying to stabilize after a steep longer-term drawdown from its 52-week high of $24.20. The stock is trading 24% above its 20-day simple moving average (SMA) and 18.9% below its 100-day SMA.
The moving-average structure is still a headwind: the 20-day SMA remains below the 50-day SMA. Over the last 12 months, the stock is up 47.96%.
- Key Resistance: $5.50
- Key Support: $4.50
LUD Price Action: Luda Technology Group shares were down 6.21% at $5.44 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by TIMS13 via Shutterstock
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