Sohu.com Inc (NASDAQ: SOHU)

Sohu.com Inc. provides online media, search, gaming, community, and mobile services in the People’s Republic of China. The company’s brand advertising business offers advertisements on its Websites to companies to enhance brand awareness; and search and others business provides customers pay-for-click and online marketing services. Its online game business develops, operates, and licenses online games and Web games; mobile business offers short messaging services, mobile games and, ring back tones, and interactive voice response to mobile phone users; and others business offers Internet value-added services and licensed video content.
Please take a look at the 1-year chart of SOHU (Sohu.com, Inc.) below with my added notations:

SOHU has fallen pretty hard over the last month, almost in a “straight line”. However, the stock had held an important level of support at $60 (blue) for the last several months and one might have expected a bounce off of that level. Nope. SOHU has broken that support and should be moving lower from there.

The Tale of the Tape: SOHU had a key level of support at $60. Now that the stock has broken support, a trader might want to enter a short trade at or near the $60 level with a stop placed above that level. A break back above $60 could negate the forecast for a move lower.
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