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AutoHome Ready To Pop Higher!

|Includes:Autohome Inc. (ATHM)

AutoHome (NYSE:ATHM) is the Chinese version of Autotrader, an online portal for car sales and buyer information. Though a Chinese company, AutoHome is backed by Telstra, a Australian telecom and media conglom. Telstra bought 55% of Autohome's parent company in 2008 for just $76 million in an effort to get in on China's rise. Today, the Australian company owns 66.2%, a stake worth over $2.4 billion at current prices.

AutoHome reports earnings next week. The chart below shows a range-breakout forming. A strong close over $39 would put the pattern target of $50 into play, or a return of about 40% above today's price.

2-hour chart of ATHM

Disclosure: I am long ATHM.

Stocks: ATHM