Stock Chart Analysis CHL

China Mobile Ltd. (ADR) (Public, NYSE:CHL)

CHL has been on a heck of an uptrend over the past few years. Recently it doubled from June through November before settling into a consolidation period. It has been trading in a symmetrical triangle over the past two and a half months and could be ready to break to the upside as soon as tomorrow. Usually these types of patterns are continuation patterns that breakout before the reach the apex of the triangle. Since CHL is getting close to the apex, it reclaimed the 20 sma, and has a bullish divergence on the MACD, I think the odds greatly favor the upside breakout.


Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis AIRM

Air Methods Corporation (Public, NASDAQ:AIRM)

AIRM has a chart that I am looking for more and more each day. It is a stock that has outperformed greatly over the past year and which appears near the end of a correction. It has been pulling back in an expanding wedge like pattern and looks like it is trying to form a higher low here. The key here, is not the chart pattern or what it's named. It's the fact that a range has been established and that it may not honor the full range this time. If that turns out to be the case then it shows that bulls are becoming more aggressive by not waiting for the full trip to the bottom of the pattern. This would lead to an eventual breakout and thus a higher high. Of course this is a hypothesis at this point, but it merits watching.


Good Trading,


Joey

for more analysis, check out downtowntrader.com

Stock Chart Analysis IMA

Inverness Medical Innovations, Inc. (Public, AMEX:IMA)

IMA completely disregarded the bearish bias on Friday and ended clearing the highs of the past 15 sessions. In doing so, it successfully cleared a downtrend line and reclaimed it's 20 day sma. There are also some bullish divergences on the indicators and if the general indexes bounce back after 6 or 7 down days in a row, then IMA could mount a little rally. Another bullish scenario I will be looking for is a series of narrow range candles as it bases above the 20 day sma. This would probably be the ideal scenario as it builds fuel for a more substantial rally. Stocks like these are worth keeping an eye on because if investors are stepping up and buying when the markets are tanking, then it should continue to climb when the markets cooperate, and at worst, not fall as hard as the rest of the carnage.


Good Trading,


Joey

for more analysis, check out downtowntrader.com