Encountered Prompt Resistance When Rising From Late-Stage Base Friday, September 25, 2009 - CANSLIM.net |
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Netease.com Inc (NTES -$1.58 or -3.55% to $44.36) encountered resistance and promptly pulled back this week under its latest pivot point. That could be a sign it is due to spend more time consolidating after already rallying this year from lows in the mid-teens. Keep in mind that this may be considered a late-stage base now, which has been noted as a riskier and more failure prone set-up. Meanwhile, important support is at its upward trendline and its 50-day moving average (DMA) line, where violations would raise concerns and trigger sell signals. After encountering heavy distributional pressure in August, NTES made an admirable stand above its 50 DMA line and prior chart highs in the $38 area. The high-ranked Internet - Content firm traded up more than +74.8% following its appearance in the April 2009 issue of the monthly newsletter, CANSLIM.net News (read here). |
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