Sohu.com LimitedShort
Head and Shoulders for SOHU on Weekly Chart
Many are asking if the sell-off in Chinese stocks has stopped after the last two weeks' beatings.
It looks like they are for now, or with moderate downside in the next 5-10 trading days.
Looking at SOHU, it lost nearly 30% of its value in two weeks. Looking at the long term chart,
SOHU can lose about 17% from its current price to reach the bottom of a multi-year trend channel.
If losses in China accelerate, it could go through that trend bottom quickly to 34.00, and
with the long standing head and shoulder pattern, it could accelerate even lower.
The pattern has the top at 100+ with the neckline close to 40.00. That would indicate a potential
0.00 stock price/bankruptcy unless the federal banks and Chinese government act accordingly.
It looks like they are for now, or with moderate downside in the next 5-10 trading days.
Looking at SOHU, it lost nearly 30% of its value in two weeks. Looking at the long term chart,
SOHU can lose about 17% from its current price to reach the bottom of a multi-year trend channel.
If losses in China accelerate, it could go through that trend bottom quickly to 34.00, and
with the long standing head and shoulder pattern, it could accelerate even lower.
The pattern has the top at 100+ with the neckline close to 40.00. That would indicate a potential
0.00 stock price/bankruptcy unless the federal banks and Chinese government act accordingly.
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