Stock Chart Analysis CDS

Stock Chart Analysis CDS

China Direct Inc. (Public, AMEX:CDS)

I commented on the other blog last night that I've been seeing some money flow back to the China sector and today there were some large moves in several names. It's tough to find good risk vs reward setups coming out of sound bases in this sector, but I think CDS may fit the bill. CDS is one of the few lower priced China stocks that didn't retrace their full breakouts. In fact, it has held an orderly channel that looks like a large bull flag. It looks to me like it just cleared the consolidation base and if it behaves like a pennant breakout, then the target takes it to 18. Also, while this is not a high volume stock, the trading volume is enough that slippage shouldn't be a huge issue.


Good Trading,


Joey

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