Tech and E-commerce stocks have been going crazy lately. The momentum has found its way to China and some key stocks could still be in the early stages of their long term moves. It sounds crazy and it’s hard to believe, right?
Let’s take a quick look at some Point and Figure charts. If you don’t know about PnF charts, they show intermediate term price movements and targets cleanly. They clear out noisy price action and don’t account for time. Significant price moves are all that matters.
Alibaba and JD.com both went public at roughly the same time 2-3 years ago. They’ve both broken to all time highs recently and are consolidating above them. The PnF Charts are very bullish with targets 60 and 80% higher respectively.
The price targets in these PnF charts are very far away. We can expect these stocks aren’t just going to get to those targets without notable pullbacks along the way. That said, it seems smart to stay bullish these names over the long haul.
Related: I’m a big fan of the long term technical work Sheldon McIntyre produces. He recently shared this perspective on China Tech:
— Sheldon A. McIntyre (@hertcapital) May 16, 2017
Trade ’em Well
Disclosure: I have no position at the time of posting