Last night we took a look at CTRP QIHU as being quintessential “high, tight bull flags,” meaning they have digested their recent breakouts remarkably well and are candidates to push higher yet. Today, they are both acting well and indeed pushing higher yet.
With this in mind, another idea that is a China momentum play offering u a high, tight bull flag setup is SOHU, seen below. Unlike the above two stocks, the secondary buy trigger has not yet occurred. The key with a developing bull flag is that it remains clean and price does not get too sloppy. You want to see a quiet, orderly pullback with sell volume tapering off before buyers arrive again.
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Did you notice that most of Japanese banks are getting a serious hit today?
MTU hit hard yeah–profit-taking no doubt