With several Japanese auto manufacturers weakened by climatic events, Ford Motors (NYSE: F) may have got the break it badly needed. Both Honda and Toyota motors have been weakened from the destruction overseas. Coincidentally, Ford and General Motors have seen some buying activity on speculation of increased market share.
Ford Motors (F) is testing 2-year support after making a recent high around $19.00 during earnings season. Since its high the stock has been hammered on concerns of slowing growth in Chinese markets and stagnant US markets. Today’s candle and low at $13.85 represents a key support level as shown on the chart above.
KongZhong (NASDAQ: KONG) made a huge move up after an upbeat earnings report with strong guidance. The Chinese wireless application company saw its stock rise 15% breaking above $7.80 on a huge spike of volume. With a float of just 7-million shares KONG may have another leg up in coming weeks.
Elong (NASDAQ: LONG) made the classic head & shoulders pattern shown on the chart below. Breaking below the $16.50 neckline this week, eLong looks extremely bearish. The Chinese online travel service provider announces earning February 18th. Although we missed the original move lower, eLong may provide a short term bounce for a short entry near the neckline. The China based online travel company is in a sector seeing huge growth.
China Agritech (CAGC) is a manufacturer of liquid fertilizers in the People’s Republic of China. The company has come under scrutiny in recent trading for securities fraud allegations regarding the size and scope of its business. Short sellers have taken hold of the company, sending shares down from their peak of $30.75 to just $7.44 per share in recent trading.
China Automotive Systems (NASDAQ: CAAS) and Motorola (NYSE: MOT) appeared on today’s chart scans. On the eve of the highly anticipated General Motors IPO, China Automotive Systems has neared the apex of its symmetrical triangle formation. The stock has also been testing a 2-year support trendline in recent trading. Motorola shows the makings of an inverse head and shoulders pattern. With a neckline of $8.75, MOT is near breakout levels.
China Sunergy (NASDAQ: CSUN) and Cenovus Energy (NYSE: CVE) are two stocks showing up on the radar screen today. China Sunergy is a heavily shorted solar energy stock with earnings on November 15th. With recent positive earnings announcement from peers in the industry and an ascending triangle formation, CSUN could be set to jump. Cenovus Energy is no stranger to our chart scans. This oil sands company looks primed for a new 52-week high.
International restaurant companies are rapidly expanding into untapped markets all over the world. For US based companies, McDonalds (NYSE:MCD) and Yum! Brands (NYSE: YUM) foreign markets represent a fresh place to grow. Lower taxes, labors rates and regulations make expansion into heavily populated countries like China and India imperative.
NovaGold Resources, Inc. (AMEX:NG), Silvercorp Metals (NYSE:SVM) and Endeavor Silver Corp(AMEX:EXK) are three mining stocks climbing the wall of worry. Even with the massive run in precious metals prices, these three stocks could double yet again before the next presidential election.
Today’s scan highlights VMware (NYSE: VMW), China Natural Gas (NASDAQ: CHNG) and Under Armour (NYSE: UA). The scan targets charts exhibiting both upsloping and downward sloping channels with multiple trendline touches. Follow these channel charts for favorable long and short entry points.