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SEED pop, who's next?

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advance_11 April 18, 2012 (Chinavestor) Feihe International (NYSE:ADY) rose 8.9% on Tuesday and is up 27% in last five days, making it vulnerable going forward. The stock became overbought considering the advance. Most larger, liquid stocks continued to trade in a narrow range. Baidu.com Inc. (NASDAQ:BIDU) is ready to break out but may just as well slip back to its normal trading range below $145. It really comes down to market sentiment for the Chinese search engine giant.

China Mobile (NYSE:CHL) was a safe stock in times of turmoil in Asia but is out of its trading range and may just slip back to it.

China Housing & Land Development (NASDAQ:CHLN) is not overbought and has momentum. Considering good news from the housing sector in China, more upside is highly likely for this stock today. For detailed trading report in Asia, read our latest pre-market report: Outlook, housing stats lift stocks in China.

Renren Inc. (NYSE:RENN) is showing some strength and is trading above its trading range. But the stock has a lot of ground to make up before its trading band will move off from lows.

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There are no oversold stocks per say today. China Gerui Advanced Material (NASDAQ:CHOP) is trading closest to theoretical lows but is not considered oversold.

Origin Agritech (NASDAQ:SEED) poped yesterday, surging 17.5% just in one day. The stock was oversold and we said yesterday that "Origin Agritech (NASDAQ:SEED) is oversold along with Qiao Xing Mobile (NYSE:QXM) and VisionChina Media (NASDAQ:VISN). These stocks may pop any time" Where will BIDU move from here?

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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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