Ctrip.com is an Online Travel Agency (OTA) and a great way to play Chinese consumption growth. It's an indirect way to play India's growth story too with its investment in Make My Trip.
Why Ctrip.com got my attention? Well - Here's the Chart - A Big decline recently and evaluation: Is the stock Buy on dip?
Let us analyze the stock Chart:
Ctrip.com on daily Chart looks like this
As you can see in the chart above: the current decline has pulled the stock to 200 day moving average - level which lots of institutions watch and also very close to Horizontal support Line of 47. This makes the above chart very attractive and a juicy opportunity for Buy the dips crowd. Add the weekly chart and the investment case becomes more compelling. Here's the weekly chart
As you can see in the chart above - the stock broke out above $48 and it took a base at 100 week ma before taking out 48. Hence, the current pullback to 100 week ma and $48 makes the stock a compelling buy. The stock looks very attractive b/w 48-49.5 with closing stop loss below 46.
With tremendous interest in Emerging market - this looks like an attractive play and stock to watch out for over next few days and weeks to find one good entry opportunity. Lots of people view Ctrip as Priceline of China. So, it's a good stock to track anyway.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers