Up first is NTT Docomo (DCM), the $63 billion Japanese communication giant. The last year hasn't exactly been fruitful for DCM shareholders. Shares have fallen around 10% in the last 12 months, dropping at the exact same time that the S&P was rallying its hardest. But as Japanese equities turn the corner, this stock is set to benefit more than most.
That's because DCM just broke out of an ascending triangle bottom, a bullish setup that shares had been forming for the last quarter. The ascending triangle is a price pattern that's formed by a horizontal resistance level above shares and uptrending support below them; as shares bounce in between those two technical price levels, they were getting squeezed closer and closer to a breakout above resistance. When that push through $15 happened, we've got our buy signal -- it's still blaring now.
Momentum adds some extra confidence to this trade: with DCM's 14-day RSI in a well-defined uptrend, this stock's momentum isn't dying off as it climbs. You may notice a lot of gaps in DCM's price action, but you can ignore them. Those gaps, called suspension gaps, are just the result of off-hours trading in Tokyo and London; they can be ignored for technical purposes.
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