WB: China’s Twitter ready to break out

December 18, 2017 12:34 PM

Weibo  (WB) is a Chinese internet play that is up 174% year-to-date and 148% over last one-year period. Earnings have been on the ascent with three consecutive positive quarterly reports. The stock rallied 15.2% in the first half of November. Weibo is prone to big streaks as evidenced by a six-week streak ending in mid-May, which rose 48% and an eight-week streak of 37% ending in mid-September. WB broke above a double-bottom trigger at $105.60 on Nov. 8. Traders should get long WB on a pullback at $109. 

About the Author

Doug Busch has been trading the U.S. equity markets for two decades using traditional technical analysis, as a trend follower, with an emphasis with Japanese candlesticks. @ChartSmarter