Things have been better for $223 billion Chinese oil giant PetroChina (PTR). Shares of the massive supermajor have been trending lower essentially since the start of the year, mirroring the slide in oil prices that we saw in early 2012. But when oil rebounded at the start of the summer, PTR didn't, indicating that this stock was having serious trouble catching a bid.
Since March, shares have been bouncing lower in a downtrending channel, a setup that gives traders a peek at the high-probability outcomes for PTR. The fact that PTR has bounced off of support and resistance so dutifully lends extra importance to those price lines -- and now, with shares pushing lower off of resistance, it's a logical time to get away from shares. After all, trend line support is the likely price target for this stock; it has been the last couple of times shares touched resistance, anyway.
Traders can ignore the plethora of gaps in PetroChina's price chart. They're suspension gaps caused by trading overseas when U.S. markets are closed. They don't have any technical implications for shares.
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