From Novice to Professional Case Study #11 - China Mobile (CHL)

Happy New Year and hopefully you have got some CHL from my bottom picks since Dec 21, it is still not too late, just need to wait for a pull back and board.  Today I am going to use China Mobile (CHL) for this last case study of 2009.

 

I have a list of stocks which I frequently monitor them, those stocks are either fundamentally strong or have high potentials.  This is important because you will get more familiar on news, price actions, history about the stocks and you will have more confident to take the hit in case it went the opposite way.  To know the fair value is very important as well and that helps on risk management.  Alright, enough for talking and let's start.  Price been flattened for weeks and recently the daily chart shows some bullish sign, see the following chart:

All signals a potential rally is coming: price action, raising trend level and whole green bars.

 

 

 

 

 

 

 

 

Also we need take a look on the weekly signal to see a confirmation, and it shows consistent signals: Price action, raising trend level and whole green bars.  In most of the time, these signals confirm the rally is real.  Couple stocks have been bottom picked using this strategy like LKD, DELL in the previous case studies.