Stock Chart Analysis CTEL

Posted by downtowntrader | 10/29/2007 09:44:00 PM | 0 comments »

Stock Chart Analysis CTEL

City Telecom (H.K.) Limited (ADR) (Public, NASDAQ:CTEL)

While the media continues to talk about the "bubble" in China, the underlying stocks keep moving higher. Recently, there has been some profit taking in the sector in general, but there are stocks making large moves everyday. Take a look at EFUT and HMSY today, and YTEC and HMIN last week. I'm not too worried about a bubble bursting when everyone is watching for it. A bubble only bursts when everyone is positive about it and buys in. Here is a chart of CTEL which recently had a huge move almost tripling from low to high. It has been pulling back on decreasing volume and is starting to turn back up on the 20sma. This could easily double from here on a retest of the high, although it would more then likely resolve into some form of a triangle before breaking out. Either way, there is a good chance that the recent low will hold for a rally attempt.

Good Trading,


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