CHL Lift Off!!

Well Traders, my CHL trade is moving along very nicely. Today the stock was boosted by news it was buying Paktel, Pakistan's largest cell company. The stock moved up almost $2 at one point, but settled at the end pf the day for a nice $1.73 gain on very big volume.

I picked this stock a while back because I liked the bounce, but I was also looking for a possible Ascending Triangle formation breakout, which happened today. This should bode very well for my trade as I now anticipate another $4 move within the next few weeks to bring the stock to about $51 with my target at perhaps $53. Here is the 6 month chart showing the AT formation:

The AT formation is outlined in RED, the price movement is traced in YELLOW, and the anticipated move is created in BLUE.

You'll see that $45 was resistance before, but now that the stock broke through that on big volume, we can expect move move to the upside. Here is the 3 month chart:

Once the stock hits my price target, I may sell a Covered Call or just sell the stock and get out. Based on the movement of the stock, and the future prospects of a cellphone company in China, the former may be a better long-term play.

I also must be mindful of the MACD and STO positions which may be nearing some weakness. Now I have $45 as support, I can use that as my stop-loss (to preserve profits) and as a springboard to the next upside bounce should the stock pull back. We'll have to wait and see...I don't want to fall for a "fakey" and get taken out too early either.

Finally, there are a number of stocks I am watching that I am holding off of for now since their earnings are coming up this week or next. Not a good time to play them into earnings...too much of a crapshoot!

Happy Trading!