Trade Ideas: SNDA, SOL, BIDU, SINA, SOHU, TSL

Baidu.com, Inc. (NASDAQ:BIDU) – Major support line has been broken last week on the daily chart at $116.24 with the next target at $96.53. An aggressive trader may want to short BIDU here. Technically, the stock is in a Bearish mode with MACD below signal line and the price below both 50 and 200 day moving averages. The stock has a strong support in the psychological level of 100, but any close below this level could start a new sell off.

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SINA Corporation (NASDAQ:SINA) – The technical daily chart looks bad. The MACD indicator is way below its signal line showing a bearish bias. There is no divergence in the MACD with respect to price movement, so it is not logical to expect a sustainable rebound at this level, even trading near the major support. The RSI indicator is in oversold territory, but stocks that are in a downtrend will stay in oversold region for extended duration before rebounding. From now, with the technical chart not showing any sign of rebound, it is best to avoid the stock until a clearer picture emerges. Stay tuned on SINA.

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It looks like Sohu.com Inc. (NASDAQ:SOHU) is in a free-fall mode with the first barely visible level of support at $45. There is the old adage of never catch a falling knife, so I’m remaining cautious. In other words, the area around $45 and $40 are strong supports from where a reversal is possible. If it breaks $40, the stock is doomed. Not a pretty picture. Long positions must be avoided.

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ReneSola Ltd (NYSE:SOL) – Seems like a falling knife scenario to me. Don’t buy it on the way down. The stock could really be near the bottom right now, but it is near impossible to predict the absolute bottom. Any close below $1.68 will reconfirm the short-term downtrend and forecast substantial additional losses.

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Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA) is in a bearish phase and I have to say that the recent downtrend does not appear be complete. The stock dropped to a new 52-week low in final trading Friday. Shares ended the day down $1.54, or 4.95 percent, to close at $29.54 on heavy trading. On the chart, the technical indicators remained bearish at Friday’s close and showed the main trend of the stock was still negative. The stock is still in very weak market as 50 day moving average is still declining and MACD is still below 0. In addition KD also show weak signal, %K line is dropping below %D line.

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Trina Solar Limited (NYSE:TSL) – Technically, the chart looks horrible and the short-term trend is bearish, but the stock is now in EXTREMELY oversold conditions and may rise back soon. TSL seems to have a lot of potential and someone is accumulating shares like here. The stock is now in the strong support zone at $6 and still persistence oversold. We could see STO turning up slightly. However, the MFI is turning up, indicating the inflow of the money into this stock which is can be consider as a positive sign. I like this stock. Stay tuned.

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Disclaimer: This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.
About Antonio Costa 325 Articles

Antonio Costa is a 35 year old part-time trader who trade stocks in the US market.

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