CHL and TEF: My telecom picks for the next bull run

One way to really distinguish the winners from the losers is to see how they react when the market is against them. i.e. strong companies in a weak market and weak companies in a strong market. Thus, this is as good as time as ever to start preparing the next bull rally while the jury is still out on rather the past few days has been mere consolidation or the start of the next bear run already.

To start off my preparation, I am compiling a list of potential longs for the next bull rally.

From my recent weekly reviews, it's evident that the techs and telecoms will be the leaders. These two telecoms in particular look amazing on the charts.

I picked these by comparing all the Cara Global 100's telecommunication sector companies using my own indicators screen, Figure 2 and 4. Then I marked the important levels in Figures 1 and 3 and set up alerts for those levels.

I am definitely biased towards China Mobile because I've used their service while I was in Hong Kong. But I can't neglect the equally bullish Telefonica charts. However, CHL has a tighter range lately, so they seem to be the winner for now for the lower risk.

[caption id="attachment_1412" align="aligncenter" width="500" caption="China Mobile Ltd"][China Mobile Ltd][][/caption]

[caption id="attachment_1411" align="aligncenter" width="500" caption="China Mobile Ltd"][China Mobile Ltd][][/caption]

[caption id="attachment_1413" align="aligncenter" width="500" caption="Telefonica"][Telefonica][][/caption]

[caption id="attachment_1414" align="aligncenter" width="500" caption="Telefonica"][Telefonica][][/caption]

[China Mobile Ltd]: http://traderpau.files.wordpress.com/2009/05/2009-05-15-chl_prop.png [China Mobile Ltd]: http://traderpau.files.wordpress.com/2009/05/2009-05-15-chl.png [Telefonica]: http://traderpau.files.wordpress.com/2009/05/2009-05-15-tef_prop.png [Telefonica]: http://traderpau.files.wordpress.com/2009/05/2009-05-15-tef.png

Posted 15 May 2009 in stocks.