$NTES (NASDAQ: NetEase Inc.) made new highs just above $180 in recent weeks:
$NTES: NetEase Inc.
The stock has experienced a considerable trending move higher since late September, when it was trading between $110 and $120 a share. The $180 level remains as resistance on the daily time frame, with $170 being the first support zone to watch for. The bulls have defended this price level well, though it remains to be seen how much longer they can do so.
Below $170 there is support just above $160, around the $162 price level. Below that there is support at the breakout level around $150. The bulls are still in control on the daily time frame, as +DMI remains above -DMI, but the ADX indicator is no longer rising, so we can expect to see some sideways trading action now as the bulls and bears battle it out.
On the weekly chart, RSI is positive and well above the 60 level, so the bulls are exerting their might for now. There was a pullback in RSI this past week as the bears applied selling pressure once $NTES breached the $180 level and wasn't able to maintain it.
$NTES is a great example to cite in illustrating that the stock market can truly baffle even the most seasoned of traders. In less than twelve weeks, $NTES appreciated in value what it had taken years to do before. It should be entertaining to watch as the year comes to a close and the new year approaches.