Friday, February 5, 2016

NetEase Inc (NASDAQ: NTES)

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 caf├ęs, 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:
1-year chart of NetEase (NASDAQ: NTES)
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.

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