First up this week is China Mobile (CHL), the world's biggest mobile phone carrier. China Mobile has been having a strong year in 2012, rallying more than 15% year-to-date on the heels of strong fundamental performance. But the gravy train may not be over yet for CHL shareholders thanks to a bullish technical pattern forming in shares.
CHL is currently forming an ascending triangle pattern, a setup that's marked by a horizontal resistance level to the upside, and uptrending support below shares. As shares of CHL bounce in between those two lines, they're getting squeezed closer and closer to a breakout above that resistance level (in this case at $56 and change). A breakout above that resistance line is a buy signal for traders; it indicates that the glut of supply of shares that's caused prices to retreat in the past has been absorbed.
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