So far we’ve had a decent 2020, but we’re not resting on our laurels. This week we’ve got one long idea and one short idea. Our two breakouts are Yunnan Baiyao Group Co. (000538) and Dali Foods (3799.HK).

Yunnan Baiyao (000538): Ascending Right Triangle

Yunnan Baiyao Group Co.,Ltd engages in the pharmaceutical business in China as well as internationally. The company operates through four segments: Pharmaceuticals, Health Products, Chinese Medicine Resources, and Pharmaceutical Logistics. It provides health products, drugs, medical instruments, Chinese medicine resources, and tea. 

The company offers its products under the white medicine health, Leopard seven, Qiancaotang, Qiancaomeizi, and Tianzihong brand names. Yunnan Baiyao Group Co., Ltd. was founded in 1902 and is based in Kunming, China. 

Trade Parameters:

• 3% Entry: $97.73.
• 1.50% Entry: $96.30.
• Stop-Loss: $84.47.
• Profit Target: $132.13.
• Reward/Risk: 3.03x.

(Source: TIKR.com)

Dali Foods (3799.HK): Head & Shoulders Top

Dali Foods Group Company Limited, an investment holding company, manufactures and sells food and beverages in Mainland China. It offers bread, cakes, pastries, chips, fries, biscuits, cookies, herbal tea, plant-based and milk beverages, energy drinks, and other beverage products. 

The company offers its products primarily under the Daliyuan, Haochidian, Copico, Doubendou, Hi-Tiger, and Heqizheng brand names. It markets its products through distributors, as well as retail, e-commerce, specialty, and catering channels. 

Trade Parameters 

• 3% Entry: $4.40.
• 1.50% Entry: $4.47.
• Stop-Loss: $5.11.
• Profit Target: $2.76.
• Reward/Risk: 2.69x.

(Source: TIKR.com)