I started this blog a year ago and it has been a great experience so far.
A lot has happened in my life since then and I find that despite the changes that unavoidably come to pass as we get older, the one thing that we all remain interested in is how to better ourselves and progress in our ability to further care for those we love.
The stock market is a mechanism by which one can become skilled at making money. The barriers to entry are limited; you can open a brokerage account and start trading in a matter of days. However, the will to try is imperative, and to find success in the market, you have to teach yourself and be prepared to make mistakes. As long as the mistakes are limited and the successes outnumber them in both frequency and size, you will be in a position to continue on.
Unfortunately, I find that the world of trading is seen as some standoffish realm that only those with business school backgrounds can navigate. That's the furthest from the truth and it is my hope that with continued contributions to this site, I will dispel that misconception. Although the frequency of my posts has diminished, I remain committed to that objective nonetheless.
With all of that said, let's take a look at $NTES (NASDAQ: NetEase Inc) and analyze its price action via the monthly and weekly charts:
$NTES closed above $140 on the weekly time frame in early May and has since been bound in a trading range between $140 and $150. In the past sixteen weeks, $NTES has closed green thirteen times and has only had three weeks in which the bears dominated over the bulls and closed the stock below its opening price.
The monthly chart shows a rising trend since the beginning of the year, as $NTES has now advanced well above the $100 - $110 range it struggled with breaking out of at the time.
The RSI signal is beginning to decline on the weekly chart and this could be reflective of some approaching price action weakness in the intermediate term. A close below the $140 support level on the weekly would likely portend a further decline towards the congestion zone highlighted on the chart between $125 - $130.
If the bulls can close $NTES above $150 on the weekly chart and follow through with strength in the subsequent week's price action, then they may have a chance to further advance the stock. At this point though I would imagine that a pullback is more likely in order to digest the significant gains that have been made over the past four months.