Youku Tudou Inc. operates as an Internet television company in the People’s Republic of China. Its Internet television platform enables users to search, view, and share video content across various devices. The company’s services for users comprise online video content library consisting primarily of professionally produced content, including television serial dramas, movies, current event reports, variety shows, and music videos. It also provides guided user-generated content through Youku Paike and Youku Niuren programs; and produces a range of content, such as sponsored Web serial dramas, reality shows, interviews, and variety shows under the Youku Originals brand, as well as on Tudou platform.
Take a look at the 1-year chart of Youku (NYSE: YOKU) below with added notations:
YOKU skyrocketed back in the spring, but after a persistent selloff
in June, July and August, the stock started trading sideways over the
past month. While in the sideways move, the stock has formed a key pair
of price levels that are worth watching. YOKU has a current resistance
at $18 (red), which has been both prior support and resistance earlier
in the year, and a $16 support (green) that has also been both support
and resistance in the past. At some point one of those levels will have
The Tale of the Tape: YOKU is trading inside a
trading range. The possible long positions on the stock would be either
on a pullback to $16 or on a breakout above $18. The ideal short
opportunity would be on a break below $16.