Dec. 18, 2009 (Chinavestor) Stocks with sustainable momentum advanced despite a broad sell-off on Thursday. Simcere Pharmaceutical Group (NYSE:SCR) is up seven days in a row but the stock became overbought and is ready to take a breather. But that has to wait because a strong market day is likely to help SCR to keep going on Friday. Mindray Medical Int. Ltd. (NYSE:MR) is another stock with a strong rally over the week and is less overbought then SCR. Expect MR to do well on Friday. But most of the action is going to take place among oversold China stocks today. Expect oversold Petrochina (NYSE:PTR), China Telecom (NYSE:CHA), Huaneng Power (NYSE:HNP) and Aluminum Corp. of China (NYSE:ACH) to come back strong on Friday. Perfect World Co. (NASDAQ:PWRD) is another candidate for a strong bounce back.
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Stocks that we like for today include those that were able to build on previous momentum. Besides Simcere Pharmaceutical Group (NYSE:SCR) and Mindray Medical Int. Ltd. (NYSE:MR) we like JA Solar (NASDAQ:JASO), A-Power Energy (NASDAQ:APWR), Tongjitang Chinese Medicines (NYSE:TCM), and UTI Starcom (NASDAQ:UTSI). These stocks are not overbought yet despite showing strong momentum.
Most overbought China stock list
The oversold China ADR list has some surprises. The large number of NYSE listed China stocks on the oversold list is highly unusual. It suggests bottom fishing time is here for Petrochina (NYSE:PTR), China Telecom (NYSE:CHA), Huaneng Power (NYSE:HNP) and for Aluminum Corp. of China (NYSE:ACH). Today may be a perfect day to build entry positions into these large cap blue chips.
Tiens Biotecch Group (AMEX:TBV) is another stock to watch. TBV fell 9.7% on Thursday and is down 7 days in a row! While a technical rally is possible the overall trend is going to be negative for the next couple of weeks. Don't touch TBV unless you're a pro and can quit at the right time.
The9 Ltd. (NASDAQ:NCTY) is another stocks with a significant price loss. The stock is trading well below her trading range but is not close enough to the theoretical lows, suggesting more downside for The9 Ltd. remains a possibility.
Most oversold China stock list