Chart Request: China Mobile Hong Kong Ltd. (CHL)

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This CHL chart is a tough read because of all the gaps. You'll often see 'gappy' charts like this when looking at stocks that trade a lot on foreign exchanges. I don't like to use candlestick analysis on these type of charts because there's so much missing information due to the overseas activity.

So on this chart what stands out to me is that the stock is in an uptrend with respect to its 50 and 200-day moving averages. If I wanted to be long, I'd look to buy near support. I see support levels at 24, 23 and 22. But since 23 and 22 are both below the 50-day moving average I, with my swing trader hat on, wouldn't touch it down there. A longer term person may still like it since it would still be above its 200-day moving average. In either time frame I'd like to see stochastic closer to oversold territory before I jumped in.


1 Comment

I was wondering what the heck was going on with those "gappy" charts that kept coming up in my scans. When I see one of those I usually just skip it - too scary looking to do good chart analysis on. But the missing data from overseas markets explains a lot.

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This page contains a single entry by Michael published on December 18, 2005 7:58 PM.

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