Sohu.com (SOHU) : Bearish

SOHU’s chart is showing a decending triangle.

With prices sitting on top of a thinning kumo, and Tenkan sen has just crossed the Kijun sen, the possibility of it being bearish is much higher now.

Possible breakdown in first 2 weeks of September (??). Maybe.

2009Aug-Sohu.Com Inc-800x600

Published by

iam802

Trend trading with Ichimoku

4 thoughts on “Sohu.com (SOHU) : Bearish”

  1. 1. I think this is a symmetric triangle rather than a descending one – the latter would have a flat base.

    2. I don’t think I can agree that this chart is bearish. The tenkan/kijun has been oscillating around each other for more than 2 months, so it’s more of an ongoing whipsaw. Hard to tell right now which way it’d move.

  2. Not sure if an IC would be a good idea with a symmetric triangle – we don’t know when it’ll break out and the velocity of the break, so an IC could be risky.

    IC’s work best when we expect the price yo yo to continue or price to stay flat, but looking at the triangle, it’s already coiled pretty tight.

    I’d prefer to wait for the breakout and short a vertical in the direction of the break if I can find any meaningful SR’s above/below the current level.

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