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These Top China Stocks Rocket Into 2018 With Bases And Breakouts

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China-based companies trading on the U.S. stock market generally ran ahead of their U.S. peers in a powerful first week of 2018.

[ibd-display-video id=3065640 width=50 float=left autostart=true] A scan of 16 leading China-based names showed an average gain of 9.3% for the week through Friday morning. At the top of the list were IBD Leaderboard name Autohome ( ATHM ), as well as Jupai Holdings ( JP ), Baozun ( BZUN ) and Weibo ( WB ). The group also included two breakouts during the week, and left seven stocks below buy points in valid bases.

58.com ( WUBA ), also an IBD Leaderboard member , was actually too exuberant, rising more than 12% in a four day rally. That drove the stock to a new high but, unfortunately, left its chart pattern short of the six-week minimum for a cup base . That means the jump to a new high was not a proper breakout. And while the move was bullish for the stock , the pattern was simply a rebound from support at the 10-week moving average, above which the stock became extended on Tuesday.

YY (YY), an IBD Sector Leader and IBD 50 stock, pulled a similar move, surging almost 12% to a new high before its base had time to mature.

Autohome's breakout , on the other hand, was clean and valid. The stock traded up almost 13% for the week on Friday. That left it extended above an early alternative buy point at 66.55, as well as the base's standard entry of 67.79.

The base is a second-stage pattern, so the stock should have some room to run.

Jupai Holdings had spiked more than 15% for the week by Friday. The stock's dollar volume is less than $13 million, which helps explain its volatility.

It is in an 11-week v-shaped cup base with a standard buy point at 29.10.

Baozun's average daily dollar volume is a much sturdier $90.3 million. But the online retail services provider still rattled off a 14% gain to Friday afternoon. That hoisted the stock back above its 10-week moving average and 3% below a 37.08 buy point in a double-bottom base .

Weibo, a rapidly diversifying micro-blogging site, thrashed out a 15% gain, launched by a 10% surge on Tuesday .

That left the stock well up the right side of a six-week cup base pattern and below a 123.10 buy point. But the pattern is late-stage , so use caution if you act on this one.

New Oriental Education & Technology (EDU) broke out past a 94.73 buy point, and ended the week extended, just above buy range. The base is second stage, leaving this big 2017 winner more room to run.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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