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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV