You would think SINA should be acting better as the SHCOMP
is trying to move off its recent bottom. But that has not been the case as this
Chinese internet media company has been getting slowly slaughtered since
peaking in mid September near $70 (last $54)!
Todays action puts the stock decidedly below its 100day
moving average near $55.50 and below all 3 of its major moving averages as well
as below gap support from August. No idea whats happening inside the company
but the technicals show a deteriorating picture with near term support near
psych level of $50. That will be a big test. If the stock cant find legs there
watch the $45 zone which was the double bottom area from July/Aug for some
buyers to step in...but given the weak backdrop that is definitely not a
certainty. The stock has been in a primary downtrend since early 2011 and the
short side, especially now since below all 3 of its major moving averages, is
surely the way to play it.
No comments:
Post a Comment