51job Inc. (JOBS) has had a "parabolic-like" advance the past two to three years with the American depositary receipts experiencing only shallow corrections along the way. However, it looks like a deeper pullback has started and is still unfolding. Let's check out the latest charts and indicators for some parameters.
In the daily bar chart of JOBS, below, we can see that prices have more than doubled over the past 12 months with the bulk of those gains coming since January of this year. Prices successfully tested the rising 50-day moving average line in February, early March, late April and early May.
Last month in June JOBS broke below the 50-day average and the line is rolling over now. The rising 200-day moving average line intersects down around $76 now. There was a sharp volume spike in late May and that may have marked the zenith.
The daily On-Balance-Volume (OBV) line turned lower signaling more aggressive selling. The 12-day price momentum study made a peak in May and weakened into June as prices continued higher. This bearish divergence lead the price weakness.
In this weekly bar chart of JOBS, below, you can see the parabolic rally. The weekly OBV line has turned lower and the weekly Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.
In this Point and Figure chart of JOBS, below, we can see a downside price target in the $85 area.
Bottom line: There are a number of bearish signals on JOBS and a downside price target of $85 but little chart support until the $70-$65 area. Traders and investors should avoid the long side of JOBS.