SFUN serves as a real estate internet portal in the Peoples Republic of China and is rallying strongly today on the heels of overall strength in most Chinese shares. Technically, the downtrend in SFUN has been reversed on a series of positive technical developments. First, SFUN had been in a very tight down channel since struggling at price resistance just above 12.00. There was a gap higher on very strong volume in late March that started SFUN's resurgence. Note that on the subsequent pullback that both gap support and the now-rising 20 day EMA held, a bullish development. SFUN has been rallying for the past week with today's strong move representing a breakaway gap and easily clearing channel resistance with a daily MACD shooting through centerline resistance. It's quickly become overbought, but momentum is definitely bullish suggesting this rally is likely to continue - with overbought pullbacks to be expected. Check out the chart:
Happy trading!
Tom
