China Mobile (CHL) is a large-cap Chinese stock that I last talked about a week or so ago in " 5 Chinese Stock Trades With Breakout Potential," when looking for technical setups in Chinese firms that trade here at home. I think that this trade bears revisiting today.
China Mobile completed a double-bottom setup back in late December after posting two swing lows at the S3 level on the chart above. From there, shares pushed through two important resistance levels, making their way to the breakout level we were watching last week at $52. A throwback this week provided an opportunity for traders to retest newfound support at that $52 level -- and provided a second chance at a low-risk entry point for longs.
Now CHL is back in breakout mode. With shares still just a few points off of that $52 price, there's still time to take a position in CHL. If you do, I'd recommend keeping a protective stop just below that $52 price.Follow @stockpickr