Meanwhile, China Mobile (CHL) is offering traders a more actionable setup this morning. Shares of the world's largest mobile phone carrier broke out above the $52 level early last week, only driving their way to just shy of $53 before reversing lower.
So has this stock seen the end of its rally already? Not likely.
China Mobile spent much of the last several months consolidating in a range between $47 and $50 (the S2 and S3 support levels in the chart above), only to charge higher since the start of February. While a minor pullback above the $52 breakout level may make investors nervous, there's reason to believe that shares are still in rally mode. Most important is the fact that $52 has been a significant resistance level since September; that makes a push through it all the more impressive.Instead, a throwback to test newfound support at $52 is a more likely scenario. That will give traders another low-risk entry opportunity in shares. Wait for a bounce off of that $52 level before buying. Then keep a protective stop at S2. Follow @stockpickr
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