As of this writing, I have no position in NHTC. I am considering entering a short trade in NHTC.
The chart of Natural Health Trends looks bearish in the short term. I am not familiar with the company, but did see there is a short report from January that has gained some traction. It seems to be a Chinese version of Herbalife? Regardless of the short thesis/fundamentals, the chart caught my attention, as the stock ran into its 200 day MA and 40 week MA, and got rejected. Old support tends to turn into new resistance. Take a look at the charts. Short term, the price action may be weak, especially after a 50% rally.
If the stock runs back up to $32 - $34 area, consider shorting, with a stop loss near $38-$40 range. If it breaks above $40, get out! If you want to play options for this short term trade, consider buying the Mar $25 puts.
The chart of Natural Health Trends looks bearish in the short term. I am not familiar with the company, but did see there is a short report from January that has gained some traction. It seems to be a Chinese version of Herbalife? Regardless of the short thesis/fundamentals, the chart caught my attention, as the stock ran into its 200 day MA and 40 week MA, and got rejected. Old support tends to turn into new resistance. Take a look at the charts. Short term, the price action may be weak, especially after a 50% rally.
If the stock runs back up to $32 - $34 area, consider shorting, with a stop loss near $38-$40 range. If it breaks above $40, get out! If you want to play options for this short term trade, consider buying the Mar $25 puts.
The Wall Street Fox
The Wall Street Fox utilizes fundamental and technical analysis to generate investment ideas. TWSF holds a MBA, and is currently preparing for the Chartered Market Technician (CMT) designation.
Website: http://thewallstreetfox.com/
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