CHT Trade Candidate

This one should definitely be on your watchlist. This isn't a Chinese company, but a Taiwan Telecom.

 This is a 5-day chart and clearly shows the 4 stages as it now moves in to the early stages of decline; there's plenty of downside here. Based on the price pattern alone, $18 would be a fair target although it could certainly overshoot that.

 There are two trend lines that are clear, the first, has recently been broken on huge volume; that back of the stock is broken. What we want to watch for now is a low risk entry. Stocks DO NOT need volume confirmation to fall, the large volume just makes it that much more bearish, but it also suggests that there's a high probability of a bounce and that adds to the high probability of a bounce based on the fact that we almost always see them when a major support level is broken. It's that bounce that we want to look for and consider shorting in to short term strength. That gap area around $31.50 would be an enticing target. Make sure you set price alerts.

To hold a long term trend, the 5-day Trend Channel would be my choice, if CHT can bounce to the $31.50 area, that puts the stop at a very reasonable risk:reward area.

Don't miss out on this opportunity, make sure to put it on a watchlist.