This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ZNH $30.96 0.36%
CHL $57.44 -0.13%
LFC $11.44 -0.56%
YZC $5.62 0.00%
SINA $49.77 -0.64%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,082.49 +17.19 0.83%
NASDAQ 4,819.3120 +43.9540 0.92%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs