Bears Appeared - SINA

Published on Monday, 06 February 2012 07:54 Written by Danny Miller

New York, February 6th (TradersHuddle.com) - Shares of SINA Corporation (NASDAQ:SINA) ended the trading session lower by $0.88 or -1.16% from its previous close. SINA's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

SINA Corporation (NASDAQ:SINA) is a Chinese online media company and owner of the Weibo microblogging service commonly referred to as the Twitter of China. With a branded network of localized websites targeting Greater China and overseas Chinese, the Company provides services through five major business lines including SINA.com (online news and content), SINA Mobile (MVAS), SINA Community (Web 2.0-based services and games), SINA.net (search and enterprise services) and SINA E-Commerce (online shopping). Together these business lines provide an array of services including region-focused online portals, MVAS, search and directory, interest-based and community-building channels, free and premium email, blog services, audio and video streaming, game community services, classified listings, fee-based services, e-commerce and enterprise e-solutions

SINA's current stock range is defined by calculated support defined at $61.07 and by the resistance level at $77.80, which should be used by traders planning their trades.

Traders wanting to establish a position in SINA stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current SINA shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: