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Who's got more upside, RENN,EDU...

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questionmark April 12, 2012 (Chinavestor) Renren Inc. (NYSE:RENN) has been one of the hottest stock lately. The stocks went from $5.3 to $6.17 in just five trading day and is stretching too thin. Despite the unusual rally, Renren Inc. (NYSE:RENN) may have more upside left if market sentiment remains sound.Talking about market sentiment: oversold Fushi Copperweld (NASDAQ:FSIN) and Synutra International (NASDAQ:SYUT) are stocks of interest on the oversold screen at bottom of page.

Next stock on top of the overbought screen is New Oriental Education & Tech (NYSE:EDU). The stock is far from extreme overbought position, leaving plenty of room to the upside.

 

Additional hot stocks on the screen below include American Dairy (NYSE:ADY), E Commerce China DangDang (NYSE:DANG) and various Chinese real estate stocks.

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Oversold stocks come handy when the market bounces back up. Vision China Media (NASDAQ:VISN) is one contender along with Synutra Int. (NASDAQ:SYUT). Fushi Copperweld (NASDAQ:FSIN) has a lot of lost ground to make up and may well do that if market sentiment remains strong.

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Overbought A technical condition that occurs when prices are considered too high and susceptible to a decline. Overbought conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp advance from $15 to $30 in 2 weeks might lead a technician to believe that a security is overbought. Or, a security is sometimes considered overbought when the stock is trading out of its trading envelope and is approaching the theoretical high. It is important to keep in mind that overbought is not necessarily the same as being bearish. It merely infers that the stock has risen too far too fast and might be due for a pullback.

Oversold A technical condition that occurs when prices are considered too low and ripe for a rally. Oversold conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp decline from $30 to $15 in 2 weeks might lead a technician to believe that a security is oversold. Or, a security is sometimes considered oversold when the stock is trading below its trading envelope and is approaching theoretical lows. It is important to keep in mind that oversold is not necessarily the same as being bullish. It merely infers that the security has fallen too far too fast and may be due for a reaction rally.

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