Sina Corporation, through its subsidiaries, operates as an online media company in the People’s Republic of China. It operates SINA.com, an online brand advertising portal that provides region-focused format and content, including multimedia news; sporting events news; automobile-related news; business news coverage and personal finance columns; entertainment news and events; technology updates; interactive video products, such as news, sports, entertainment, and education; and education, digital, fashion, eLadies, luxury, health, collectibles, travel, and other interest-based channels.
Take a look at the 1-year chart of Sina (NASDAQ: SINA) below with my added notations:
SINA has hit the $52.50 mark (red) as resistance multiple times in the past month. In addition, the stock has been climbing a trend line of support (green) since mid-November. Eventually, the stock will have to break either the $52.50 resistance or the trendline support.
Join our new Linkedin Group by clicking the link below:
The Tale of the Tape: SINA is winding up between two key levels. A long trade could be made at the trendline support or on a break above $52.50. A break below trendline would be an opportunity to enter a short trade.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach