If you are looking for a knockout trade that could make you almost 75%, then China Natural Resources Inc (CHNR) might be a candidate.  No one knows exactly what is driving shares of CHNR up, or at least no one is talking about it. But that is the beauty of technical analysis, you don't have to know exactly what is happening behind the scenes. A picture speaks a thousand words, and nowhere is that more true than in technical analysis.

The technicals are saying there is a Bull Flag in CHNR. The flag pole on the run-up is over $35 long.  Considering CHNR is trading under 50 right now, that indicates CHNR could rocket to over $85.  The only problem is that you have to manage the trade with a large stop.  Your stop would probably have to be around 38, but with the ability of making $35 your reward to risk ratio still looks nice at 3.5:1.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.