Shares of Dangdang ($DANG) are making a big move this month with a triangle breakout on expanding volume. First, notice how the stock surged from ~4 to ~12. Second, the triangle consolidation worked off overbought conditions. Third, the high volume breakout signals a continuation of this advance. Careful with this one: low-price times internet-play times Chinese-stock equals risk cubed.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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