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.
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