Looking at the following list of Chinese stocks, the most oversold list, it is interesting to find Sohu.com Inc. (SOHU) on the list. While the stock is technically not oversold, yesterday's stumble of 5.31% clearly had its effect. Similar to Sohu, Changyou.com (CYOU) fell 7.91% on Thursday and got on the black list. China Mobile (Hong Kong) Ltd. , (0941.HK) (CHL) is not oversold but fell for he week, as well.
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.