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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Chinese Stock Trades With Breakout Potential

China Life Insurance

Up first is $86 billion China Life Insurance Company (LFC), the world's largest life insurer. It's been a rough year for LFC shareholders. In the past 12 months, the firm has seen its shares slide more than 21% on the heels of disappointing fundamental performance.

But this stock has been taking advantage of the bullishness in the region, and the technical setup currently forming in this stock points to higher prices in the near-term.

Right now, LFC is forming a shallow ascending triangle setup, a pattern that's formed by a horizontal resistance level at $46 and uptrending support that acts as a sort of price ceiling for shares. Basically, as shares bounce in between those two technical levels, they're getting squeezed closer and closer to that resistance -- increasing the probability of a breakout above that level. A push above $46 is a signal that it's time to be a buyer.

Adding some extra confidence to the setup is the fact that momentum, as measured by 14-day RSI, has remained in a solid uptrend since LFC's August bottom. While this setup is hardly a "textbook" pattern, the trading implications look positive on a push above $46.

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