Looking at the most oversold China stock list below, The9 Ltd (NCTY) still tops the list with no signs of stepping up. In fact, another China online game company, Giant Internactive Group Inc. (GA), is showing signs of weakness despite strong market conditions. But Suntech Power Holdings Co. Ltd. (STP) jumped $.56 or 3.66% on Thursday to $15.86 after we reported the stock being oversold on Thursday morning.
We highlighted CNOOC Ltd. (0883.HK) (CEO) and PetroChina (0857.HK)(PTR)(601857.SS) as oversold companies that deserve a better pricing (Petrochina is oversold ready to rumble on July 15 & CNOOC Ltd (CEO) is oversold on July 8) and both companies outperformed the DJIA for the subsequent period. And while these Chinese oil major don't look like oversold anymore, they have a lot of upside potential left according to the Oversold indicator.
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.