While BitAuto (BITA) did not join Alibaba (BABA) and NetEase (NTES) as one the seven Chinese stocks being bought by top-performing mutual funds, the provider of internet content and marketing services for the automotive industry is trying to set up a new run.
X One important metric to look for in a stock is an 80 or higher Relative Strength Rating. just hit that mark with a jump from 80 to 85 Wednesday. History shows that the market's biggest winners tend to have an RS Rating of over 80 as they launch their biggest price moves.
BitAuto, which made a massive move from November 2012 through August 2014, is working on a consolidation with a 34.28 buy point. See if the stock can clear the breakout price in heavy trade.
Fellow Chinese internet stocks Sina (SINA) and Weibo (WB) may also be setting up new breakouts, while Alibaba and Autohome (ATHM) continue to add to their recent gains.
On Wednesday, BitAuto rose over 1% in light volume, moving within 11% of the potential buy zone.
The company showed 78% EPS growth in its most recent report. Sales rose 32%. Look for the next report on or around Aug. 7.
BitAuto earns the No. 16 rank among its peers in the Internet-Content industry group. Autohome, Sina and YY (YY) are among the top 5 highly rated stocks within the group.
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