The exact opposite price setup is taking shape in shares of China Mobile (CHL).
2013 hasn't exactly been a banner year for the biggest mobile phone carrier in the People's Republic. Shares of CHL are down 10% since the calendar flipped over to January, underperforming the S&P by a huge span. And despite the bounce in shares since the end of June, I'd suggest being a seller here.That's because CHL has been trending lower in a channel every bit as well-defined as the uptrend in Chevron; that channel gives us a high-probability range for China Mobile's shares. Now, with shares hitting their head on trendline resistance, it makes sense to unload your CHL stake here as this stock catches resistance. Traders who go short should plan on an exit as this stock gets near trendline support.
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