China Mobile (CHL) 11/5/09 PriceWatch Alert Technicals Showing Bearish

Posted: Thursday, November 05, 2009 8:06 AM EDT

China Mobile (NYSE: CHL) closed yesterday at $47.50. So far the stock has hit a 52-week low of $38.51 and 52-week high of $59.22. China Mobile stock has been showing support around 46.95 and resistance in the 48.47 range. Technical indicators for the stock are Bearish and S&P gives CHL a neutral 3 STAR (out of 5) hold rating. CHL appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 45 covered call (CJX AI) for a net debit in the $43.50 area. That is also the break even stock price for this trade. This covered call has a 72 day duration, provides 8.42% downside protection and a 3.45% assigned return rate for a 17.48% annualized return rate (comparison purposes only). China Mobile has a current annual dividend yield of 3.38%. [THA-Seven Summits Research]

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