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.
Take a look at the 1-year chart of Sohu (Nasdaq: SOHU) below with my added notations:

SOHU has formed a relatively clear up-channel chart pattern over the last 4 months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to channels, remember that any (3) points can start the channel, but a 4th point or more confirms it. You can see that SOHU has several points of channel resistance (red) and support (green).

The Tale of the Tape: SOHU has formed an up-channel. A long trade could be entered on a pullback down to the channel support, which currently sits near $52, or on a break through the channel resistance, which is currently sitting near $60. Short opportunities would be on rallies up to channel resistance or on a break of channel support.
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