David Fuller's view I last discussed China Mobile (941 HK) (p&f, monthly, weekly & daily) on August 4th, when it broke decisively above lateral resistance near HK$80. If it can maintain that move the entire pattern will continue to resemble a Type-3 (ranging, time and size) base formation, as taught at TCS, in the latter stages of completion.


This purchase was funded with the cash raised by my sale of the BlackRock Gold and General Fund last month, so China Mobile is now one of my top-10 personal investment holdings. After mentioning it on the 4th, I thought I would probably buy it but waited because stock markets were short-term overbought and a reaction would not have been surprising. Following yesterday's gains I placed the order in London and paid HK$83.1065 in Hong Kong today. I still expect a temporary reaction in stock markets, which may have actually commenced today. Nevertheless on viewing global chart patterns I am hoping that this will be confined to additional ranging support building rather than the bigger correction that some other strategists have forecast.

I feel that China Mobile has lowered risk in my long-term portfolio. The share currently yields 3.43% at today's close of HK$81.85 and this is covered 2.32 times. It has raised this yield by a third over the last five years, and sells at an historic p/e of 12.44 and an estimated p/e of 12.24, according to Bloomberg. China Mobile has little debt and over 550 million customers in an expanding consumer market.