October 29, 2011 - E-Commerce China Dangdang Inc. (DANG), dubbed the Chinese Amazon.com (AMZN), did something Friday that hasn't been done since May 2011. Close above the 50 day moving average. E-Commerce China Dangdang Inc. (DANG) was one of my favorite china stocks in early 2011 but the stock kept breaking down technically. This alerted me that I needed to sell the stock and wait on the sidelines. And sell I did! I bought DANG around $20 but was stopped out at $19.61. A week later, E-Commerce China Dangdang Inc. (DANG) stock plunged to $10.72.DANG was very bearish several months after that and finally started hitting bottom a month ago near $5.00. On Friday, DANG saw the first close above the 50 day moving average since I sold the stock. This is a major technical break out which was supported by heavy volume. If DANG reports solid earnings in a few weeks, we could see the stock break out towards $10-12. Watch this one closely!
