General Steel (NYSE:GSI) is absolutely overbought and is ready for a pull back. JA solar (NASDAQ:JASO) is trading way above her trading range but is not as close to the theoretical highs as many other China ADRs. Chinese solar stocks have been very strong on Monday; Canadian Solar (CSIQ), China Sunergy (NASDAQ:CSUN), Suntech Power (NYSE:STP), LDK Solar (NYSE:LDK), just to name a few. But these stocks are not overbought yet suggesting more upside is on the way.
Most overbought China stock list
finding stocks for bottom fishing is easy thanks to the oversold indicator. Huaneng Power (NYSE:HNP) is the most oversold China ADR at the moment and given her strong performance in Hong Kong this morning, HNP is going to do well for the rest of the week. We just told yesterday that "This suggests a technical correction is imminent and expect HNP to do well for the rest of the week as well." Hope you listened... Another stocks we highlighted was China Mobile (NYSE:CHL), another value play at bargain prices. Just watch... Stocks we warned you not to touch was Tiens Biotech (AMEX:TBV), a good call given her fall of -9.9% on Monday. Nam Tai Electronics (NYSE:NTE) is another "no go" for Tuesday.
Most oversold China stocks list
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.