TAL: inverted head and shoulders and gap fill play
Updated
TAL (Chinese Stock):
I'm bullish Chinese stocks in general but I really do like the look of TAL, which looks very similar to EDU.
A few reasons to keep a good look on TAL:
- price is slowly getting back above the Ichimoku cloud;
- there is a huge gap between $9.68 and $17.36;
- the weekly chart chart has the look of an inverted head and shoulders (bottoming pattern).
Has TAL found a bottom? It looks like it.
Can we fill that gap? Not sure. However the chart looks promising.
The next resistances are at 5.45, 5.66, 5.91 and 6.48. If we cross 6.48 I would expect the price to accelerate to the next resistance of 9.68, then potentially fill the gap.
If we see weakness in the coming days, the next supports are at 4.62 and 4.28.
I'm initiating a long position today with a stop around 4.80.
If you cannot monitor your trade actively, waiting for a break of 6.48/6.80 is a wise decision.
Trade safe!
(This is no financial advice. Technical analysis is given to help you make your own decision. As always place a stop loss when you enter the position, and do not ignore risks of delisting for Chinese ADRs).
I'm bullish Chinese stocks in general but I really do like the look of TAL, which looks very similar to EDU.
A few reasons to keep a good look on TAL:
- price is slowly getting back above the Ichimoku cloud;
- there is a huge gap between $9.68 and $17.36;
- the weekly chart chart has the look of an inverted head and shoulders (bottoming pattern).
Has TAL found a bottom? It looks like it.
Can we fill that gap? Not sure. However the chart looks promising.
The next resistances are at 5.45, 5.66, 5.91 and 6.48. If we cross 6.48 I would expect the price to accelerate to the next resistance of 9.68, then potentially fill the gap.
If we see weakness in the coming days, the next supports are at 4.62 and 4.28.
I'm initiating a long position today with a stop around 4.80.
If you cannot monitor your trade actively, waiting for a break of 6.48/6.80 is a wise decision.
Trade safe!
(This is no financial advice. Technical analysis is given to help you make your own decision. As always place a stop loss when you enter the position, and do not ignore risks of delisting for Chinese ADRs).
Trade active
TAL keeps giving. Who is in?Trade active
Approaching the gap zone. Likely resistance. Taking half profit into strength.That's a 70% move people!
Happy Xmas!
Note
if you don't own enough to take partial profit, raise your stop loss to about 8.25Note
Raise your stop again, this thing is a beast.Totally overbought now.
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