We're seeing the exact opposite setup in shares of Chinese cellular carrier China Mobile (CHL) -- and after a major breakdown late last week, CHL looks primed for more downside ahead. China Mobile is currently forming a descending triangle, the bearish opposite to the bullish setup in Bunge.
Support just below $52 acted as a price floor for shares all the way back since August, but the breakdown last week took out any buying pressure at that level, triggering a sell signal for shares. $47 is the next-lowest support zone to watch in the next few weeks.Momentum adds some extra downside evidence for CHL: 14-day RSI has been trending lower since this pattern started forming. That's an indication that prices are falling at an increasing rate in China Mobile right now. For a quick short trade, CHL looks like a good option this week.
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