With that in mind, I would target a higher resistance level, say $14.01, or $14.50, which would be 10% and 15% higher respectively. Stay long until you see a confirmed sell signal or a close below the t-line.
2. Now, let's look at Bitauto Holdings, which provides Internet content and marketing services for the automotive industry, primarily in China.
Bitauto traded up 1.33% on Thursday, closing at $48.06.
- Thursday's range: 43.17 - 48.17
- 52-week range: 11.00 - 49.67
- Thursday's volume: 685,493
- Three-month average volume: 948,045
Bitauto is a great chart, and has been trading in a bullish pattern since July 2012, up over 1,200% during that time. There have been pullbacks, but nothing major, as the stock has occasionally pulled back below the 50-day simple moving average.
Yesterday, Bitauto had a little pullback, offering traders a lower entry point.
Price action gapped down yesterday, opening below the 34-day exponential moving average, and then traded back up, engulfing the previous day's candlestick, a bullish engulfing signal, and engulfed the 34 EMA, 20 SMA, and the t-line. These rare signs that price action will continue trading higher today.
Look for an entry within yesterday's candlestick, anywhere above the 34-day exponential moving average, which is at $44.29.
I would target the top of the trend channel, which is around $55.25 today, roughly 15% higher. Then I would secure some profits at that level, wait for another pullback and add to the position, and repeat until my pockets were full of cash. Stay long until you see a confirmed sell signal, and wait to see several days of confirmation to get out of this chart.
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