Bitauto Hldg Ltd (NYSE: BITA)

Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry primarily in the People’s Republic of China. The company operates in four segments: bitauto.com Advertising Business, EP Platform Business, taoche.com Business, and Digital Marketing Solutions Business. The company also distributes its dealer customers’ automobile pricing and promotional information through its partner Websites, including portals operated by Tencent, Netease, and Qihoo 360, as well as social networking Websites and Internet video Websites. In addition, it provides customer services and training to dealer customers.
Take a look at the 1-year chart of Bitauto (NYSE: BITA) with added notations:

BITA has been moving higher throughout most of 2014. However, the majority of the stock’s run has come over the most recent 6-7 months. During that time, the stock has formed a trendline of support (blue) that it has been bouncing on top of.
Always remember that any (2) points can start a trendline, but it’s the 3rd test and beyond that confirm its importance. BITA’s trendline seems to be important now that it has been tested 3 separate times.

The Tale of the Tape: BITA has created a 6-month trendline of support. A long position could be entered on a pullback to that trendline, which is currently sitting right around $75, with a stop placed below that level. A short position could be entered if the stock were to break the trend line support.
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