China Natural Gas (CHNG)

Company

"China Natural Gas, Inc., is one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas (CNG) for vehicular fuel in Xi'an, China and the first China-based natural gas company publicly traded in the US." (company website)

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CHNG 4-month chart
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CHNG 1-year chart

Buy

CHNG enjoyed a huge jump in early June but has since steadily trended downward. I am seeing this as an equilibrating move that is about to be reversed.

  • Percentage price oscillator (PPO) — just crossed above the signal line
  • Volume — much heavier-than-normal in past week

Based on technical analysis, MarketEdge does not follow CHNG

Sell

gain Bottom line
25%

I was stopped out of my position by a poorly entered order. With CHNG skyrocketing today in advance of this afternoon's earnings, I put in a trailing stop to trigger if the price went back down 40¢. Unfortunately it was a simple trailing stop, not a stop-limit order, so when it triggered the spread between asking price and bid bit me in the rear. Oh, well, 25% ain't half bad. And who knows what will happen after the earnings report?