China stocks have come out of hiding, and one of them is Weibo. The stock has been mired in rangebound action for months. With some momentum behind it, this stock may finally break through the ceiling.
The highs in early March were stymied by the 200 ma. You can clearly see the volatile action in the chart below. The stock moved sharply down off those highs on strong turnover. Momentum swings quickly on Weibo, and the stock is now set up to tag those recent highs … and then some.
The MACD is on a buy signal, and momentum has a bit more room to run. The cloud is starting to open up as well – a good sign for the bulls. I believe the stock will follow the path of the purple bars and start to run higher after a breakout.
Take a deeper dive into Weibo’s chart action (Nasdaq: WB) 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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About Weibo (WB)
Weibo is a social media platform for people to create, distribute, and discover Chinese-language content. It operates through two segments, Advertising and Marketing Services, and Value-Added Services.
The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China.