New York, September 8th (TradersHuddle.com) - Shares of Sohu.com Inc. (NASDAQ:SOHU) closed the trading session at $79.05 near its 50 day and 200 day moving averages currently set at $78.03 and $79.36 respectively. Sohu's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

Sohu.com Inc. (NASDAQ:SOHU) operates an Internet portal in China. The Company's Web site consists of Chinese language Web navigational and search capabilities, Web-based communications services, and a platform for e-commerce services.

Sohu.com price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Sohu.com with a small position and wait for the stock to break out above the 200 day moving average at $79.36, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $78.03 breaks it could mean further downside in the horizon for Sohu.com.

Source:tradershuddle