Some of the bigger Chinese companies have been on a roll lately, and the media company Sina is one of them. Left for dead just a couple of years ago, it has surged to profitability quickly as the stock regained footing. High volume and volatility have been consistent, and its spinoff Weibo has certainly helped pad the bottom line.
After a strong run so far in 2017, investors have begun wondering, “Is there more left in the tank?” We think so, but it won’t be easy to keep the upward trend going.
Momentum indicators are squarely bullish, with relative strength reflecting investor optimism. I like to see the RSI at high levels, and though it’s elevated, this is not a sell signal until price and momentum turn downward. An inverse head/shoulders pattern is bullish and projects the stock will rise above $85, about 9% higher. Volume levels have strengthened as well during February, telling us institutional sponsorship is present. Resistance is clearly here at the $80 level, but I think this latest surge will put Sina over the top and into the $100 level.
Sina (Nasdaq:SINA) Video Chart Analysis
Take a deeper dive into the chart action on tech stock Sina.com Nasdaq:SINA and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
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SINA Corporation, through its subsidiaries, operates as an online media company in the Peoples Republic of China. It operates SINA.com, an online brand advertising portal that provides region-focused format and content, including multimedia news; business news coverage and personal finance columns; sporting events news; automobile-related news; entertainment news and events; technology updates; interactive video products, such as news, sports, entertainment, and education; and education, digital, fashion, eLadies, luxury, health, collectibles, travel, and other interest-based channels. The company also offers SINA mobile, a mobile portal, which provides news information and entertainment content from SINA.com for mobile users in mobile browser and application format. In addition, it operates Weibo.com that offers self-expression products to enable users to express themselves on Weibo platform; social products to promote social interaction between users on Weibo platform; discovery products to help users discover content;