The stock is in breakout mode so it certainly has a chance to keep running as small cap Chinese stocks are once more the center of attention, but the stock is nowhere near any support. With these very strong charts I start using the 10 day moving average - which is where TSTC falls back to on "corrections" ... and it is now nowhere near the 10 day which is under $20.50. We'll try to buy it back on any pullback (I suppose something under $22); if not - other fish to fry.
So for the first time in over 2 months this teflon stock broke the 10 day moving average. In fact it looks like it potentially could fall to the 20 day. For now I'll make a 1.4%ish purchase to get back what we sold in the $23.80s at $21.03. So not only were we able to lock in a very quick 21% gain on our original purchase, we have been able to get back in at a 12% discount to our sale price - a week later. Certainly the stock could visit under $20.50 as that's the true support but since we've dumped some other positions today, I'm looking to rotate some money into names whose charts still are in solid position. Today's purchase is modest in size, we'll see if we can grab more at lower prices... if however the 20 day moving average is broke, we have to rethink things.
This is more of our standard mode of operation...
.....I see a lot of the nonsense Chinese stocks (not TSTC but many others) taking big hits today as well. I am kicking myself because yesterday I saw a trio of speculative sectors rising together which should of been my call that the Kool Ais was over flowing and it was time to take profits - drybulk shippers, Chinese solar, and nonsense $2 Chinese stocks.
Long Telestone Technologies in fund; no personal position