China's Renren: Social Networking Back In Vogue
Nicholas Santiago | Nov 27, 2012 03:42PM ET
Renren Inc (DANG ). This stock has started its grind higher, recently moving from $3.68 to a high today of $4.66 (+27%). All these moves have left RENN forgotten in the dust. But for how long?
3. The chart is sweet as cherry pie. Note the chart below has a beautiful rounded bottom. In addition, note the stock bottomed at a perfect double bottom from December 2011. The combination of the pattern with the perfect double bottom price means Renren could be setting up for a spike higher.
Targets
I am long shares of RENN at $3.45. Should the stock start to move higher, $4.25 is the first target with the second target at the 200-day moving average on the daily chart at $4.50. When you add up the social networking stock moves, the Chinese ADR's gaining favor and the chart setup, this long play looks excellent.
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