CHN Charts

With a large spike in price and volume yesterday CHN broke above resistance at $3.54 and has suggested a target of $4.55. Price has been rising very strongly (perhaps too strongly to be maintained) however the stock has formed a valid uptrend line and as long as price stays above that, all should be well. As well as being in an uptrend CHN is making higher troughs and peaks on the weekly chart so is ticking all the buy signals. Elliott Wave is less clear. The recent retracement could be a Wave 4 but with the pullback lasting only 2 weeks it is a bit short and more likely a sub-wave 4 - which would make the target pehraps the end of Wave 3. If so a larger retracement could be expected before a final push to the high for this price cycle. Anyway - looks like a good short-term trade if price goes above yesterday's high (there was a late sell-off yesterday and before buying it would be good to see that reverse rather than continue.