Sina Has Reached A Decision Point

Some of the bigger Chinese names have been on a roll lately, and Sina is one of them. Left for dead just a couple of years ago, the company surged to profitability quickly as the stock regained footing. High volume and volatility have been the highlights of Sina, and their spinoff Weibo has certainly helped to pad their bottom line. But technically the stock is getting rich, and after the strong run so far in 2017 investors are wondering 'is there more left in the tank?' We think so, but it won't be easy.

Momentum in indicators are squarely bullish as the relative strength reflects investor optimism. We like to see the RSI at high levels, and though elevated that is not a sell signal until price turns down with the indicator. An inverse head/shoulders (bullish) is notable and projects the stock here above 85 bucks, about 9% higher. Volume levels have strengthened as well during February, telling us institutional sponsorship is present. Resistance is clearly here at the $80 level, but we think this latest surge will put Sina over the top and onto the $100 level.

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