Diamond Foods (DMND) is one of those names that we know but we don't know. We know plenty of its products (like Pop Secret popcorn), but we don't necessarily know the corporate name.
DMND has been stuck in a broad, sideways consolidation between $25 and $35 as can be seen in the chart above. Diamond has been making higher lows in recent months, but the topside is still restrained at $35. In a better market environment, we would anticipate an upside breakout soon.
In this long-term log chart of DMND, we can see the big decline and the subsequent recovery process. The sideways price action around $30 looks clearer on this chart (above), and the upside potential for DMND can also be seen. Prices could double from this $30 base to around $60, which is the underside of a resistance area. Investors could either buy available weakness and use a sell stop under $29.50 or look to buy a breakout over $35 that is accompanied by a sharp increase in volume.