NetEase, Inc., through its subsidiaries, operates an interactive online community in the People’s Republic of China. The company operates in three segments: Online Game Services; Advertising Services; and E-mail, E-commerce and Others. It offers massively multi-player online role-playing games and mobile games; and distributes its point cards to gamers across China, as well as through wholesalers, Internet cafés, software stores, supermarkets, bookstores, newspaper stands, and convenience stores primarily in Guangzhou Province, Shanghai, and Beijing.
Take a look at the 1-year chart of NetEase (NASDAQ: NTES) with the added notations:
After repeatedly struggling to break the $150 level (red) back during
the summer of 2015, NTES finally broke through that level this past
November. The stock peaked around $185 and has since pulled back to the
old $150 breakout point. NTES has found support at $150 a couple of
times over the past couple of weeks, but yesterday the stock closed just
below that mark.
The Tale of the Tape: NTES failed to hold its $150
support yesterday. A trader could enter a short position near $150 with a
stop placed above the level. If the stock were to break back above the
$150 level, a long position might be entered instead.