SouFun Holdings Limited operates a real estate Internet portal, and a
home furnishing and improvement Website in the People’s Republic of
China. The company offers marketing services on its Websites, primarily
through advertisements, to real estate developers in the marketing phase
of new property developments, as well as to real estate agencies; and
suppliers of home furnishing and improvement, and other home-related
products and services. It also provides basic listing services that
enable customers to post information of their products and services on
Websites, and special listing services, which offer customized marketing
programs involving online listings and offline themed events to real
estate agents, brokers, developers, and property owners and managers;
and suppliers of home furnishing and improvement and other home-related
products and services.
To review potential trading opportunities with SouFun’s stock, please
take a look at the 1-year chart of SFUN (SouFun Holdings Limited) below
with my added notations:
SFUN may be forming a bearish chart pattern known as a double top.
Double tops are reversal patterns and are as simple as they sound:
Rallying up to a point (T), selling off to a support, and then rallying
back up again to approximately the same top (T).
SFUN appears to have formed a double top price pattern (red) from
December of last year until this week. As with any price pattern, a
confirmation of the pattern is needed. SFUN would confirm its pattern by
breaking the $70 support (green) that was created by the double top
pattern.
The Tale of the Tape: SFUN has formed a potential
double top. A short trade could be made on a break of the $70 level.
Since there is no guarantee of a breakdown, a long trade could be made
at $70 if a trader is willing to disregard the pattern.
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