By Stockpickr Staff (Mar. 6, 2009)

Thursday, despite the disappointment around the lack of any new stimulus measures, the Chinese stock market still managed to trade to the upside, with the Shanghai Index closing up 1.04% to 2,221.08. That strength finally cooled off on Friday, as short-term speculators booked profits pushing the Shanghai Index down 1.26%. This is a minor pullback, when you compare it to the 7.22% run on Wednesday and Thursday.

China-focused investors have a more important reason to be bullish. This week, Chinese Premier Wen Jiabao said China can achieve 8% growth this year in the face of a deepening global economic crisis. Jiabao also promised to announce more measures to raise exports and create more jobs. Also helping to increase bullish sentiment in the region were comments from China’s stock regulator that said Beijing might cut a trading tax.

Looks like China is in the sweet spot. The country has a strong balance sheet and doesn’t have to engage in heavy deficit financing to fund their stimulus package. In fact, many economists and market observers like Jim Cramer think China will soon begin to acquire under-priced assets and companies around the globe, due to their strong financial position.

With so many things on the right track in China, how can you profit? Let’s take a look at a few charts of China-based stocks that could be setting up to make a big move.

1. Shanda Interactive Games

The chart for Chinese online media company Shanda Interactive Games (SNDA) looks very good. The stock is displaying a number of bullish trading patterns. One bullish pattern you can see on the chart below is how the Shanda shares have been making higher lows since December 2008. This demonstrates that when the stock pulls back buyers are eager to load up on the name. The stock is also trading above both the 50-day moving average ($30.07) and the 200-day moving average ($27.75), which indicates the price trend is positive and the stock is under healthy accumulation.

It’s worth noting that six out of the last nine trading sessions saw volume go over 1 million shares, versus the average daily volume of 880,000 shares. On only two of those nine trading days did the stock fall. Shares of Shanda look poised to trade back up to previous overhead resistance at around $34 a share. If the stock can crack through that level it could be on its way back to three-year highs at around $41 a share.

If you’re interested in learning about a few other Chinese Internet stocks, such as China Digital TV (STV) and NetEase.com (NTES), check out the China Watch: Internet Stand-Outs on TheStreet.com TV.

2. Sohu.com

Another compelling Internet media company stock chart is Sohu.com (SOHU). Shares of Sohu.com have been making higher lows since December 2008. The stock is now trading just under the 50-day moving average of $43.88. If the stock can hold around these levels it could represent a good time to consider buying the stock. On the flipside, if shares of Sohu.com can’t hold, then it might be setting up to re-test around the $42.50 area. Notice on the chart how the volume by price (on the left side) shows activity between $45 and $42. This range has been the heaviest, so the stock is might be setting up for a big move. If the stock can start to trade higher, then watch for shares to potentially breakout above $51 a share. A breach of that level could send the stock back towards $59 a share.

The stock is also heavily shorted, with over 12% of the float in control of the bears as of February. This high short interest could drive a short squeeze on any good news.

Check out this video to see why James Altucher likes Sohu.com along with KongZhong (KONG) and SINA (SINA).

3.Baidu.com

China’s top search engine Baidu.com has been soaring of late. The stock has climbed from $105 a share to over $160 in just a few months. If you’re a bullish on the stock you should be very happy about how good this chart looks.

Shares of Baidu.com have broken above some previous resistance at around $142.50 a share and $145 and it has filled much of the gap down from a huge one-day sell off back in November 2008. The stock just continues to uptrend and looks ready to make a run back to the 200-day moving average of $227.87. However, when you consider that Baidu.com has gone up 10 out of the last 12 trading sessions, it wouldn’t be out of the question to see the stock pull back in the short term.

It’s worth noting that over 11% of the float on Baidu.com is sold short, as of February. This high short interest could continue to fuel a short squeeze in this stock. If you’re bullish on Baidu.com, then you might want to use any weakness in the stock to accumulate shares.

4. Trina Solar

Are shares of Trina Solar (TSL) hitting a bottom? Looking at the chart below, you can see that shares of Trina Solar have found some support at around $5.60-$5.75 a share. If the stock can hold these levels it could mark an amazing buying opportunity and a potential double bottom in the stock.

It’s worth mentioning that the last time the stock hit this level it ran all the way up to over $10 a share. That by no means indicates the stock will do the same now, but the $5.60-$5.75 range could be the level where sellers just simply disappear on Trina Solar.

If you’re interested in learning about other ways to play the solar industry in China, check out the China Watch: Solar Stocks that Will Shine On on TheStreet.com TV.

P.S. Where is Jim Cramer putting his own money? Take a free peek at his personal portfolio to see all his buys and sells by clicking here. When you do, Jim will also send you exclusive email alerts telling you everything he’s about to add to or shed from his Action Alerts PLUS portfolio -- before he makes his trade.