In my opinion, SOHU is a good example of the risk of trading low liquidity stocks.
From the chart, we can see how it breakout of the triangle and rise to $70+.
After that, look at how the price falls from Sept 16 to Oct 16.
The last push up to $71 from Oct 16 to Oct 23 [...]
SOHU has been making lower high, lower low since September 17.
And yesterday, there was a fairly high volume selldown bringing the price down by more than $2.
The Weekly Chart suggest a support at $62.71 with a fairly thick kumo supporting it below.
While on the Ichimoku Daily Chart, it has just pierce through support at $64.62
If [...]
Previously, it was highlighted that SOHU is forming a symmetrical triangle (many thanks to GR for pointing it out)
And as with symmetrical triangles, there is a chance that it can break out either way.
For me, I took a bet and Short an Iron Condor on SOHU. My beliefs was that it will remain at the [...]