Top China ADR Portal

China ADR stock research


Warning: strtotime(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 56

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 198

China stocks to watch on March 23, 2010

E-mail Print PDF

telescope1 March 23, 2010 (Chinavestor) Shares of China Eastern Airlines (NYSE:CEA) advanced +7.7%, making it the best performing Chinese  ADR on Monday, but became overbought suggesting a correction is looming. City Telecom (NASDAQ:CTEL) is almost as close to theoretical highs as CEA but the sudden price increase over the last five days looks excessive. A stock less striking but important is Baidu.com (NASDAQ:BIDU), the largest Chinese search engine company. The stock price looks balanced entertaining the idea of the $600 mark.

 

Shares of FUQI International (NASDAQ:FUQI) remain oversold. Earnings related weakness of Linktone Ltd. (NASDAQ:LTON) is captured by the oversold monitor, a new addition from yesterday. China Green Agriculture, Inc. (NYSE:CGA) fell -11.28% in the last  five trading days and was among the worst five performers on Monday. Despite a significant slide, more downside has left for CGA according to the oversold monitor. China BAK Battery (NASDAQ:CBAK) fell -6.69% since last Wednesday but is trading within her trading range - suggesting more downside is possible.

 

Details: China Eastern Airlines (NYSE:CEA) is in trouble on Tuesday for a number of reasons. It is not only overbought after the significant rally on Monday but is fundamentally under pressure following a UBS downgrade of smaller rival Air China (HKG:0753). All three major Chinese airliners fell in Hong Kong today, suggesting their NYSE listed shares will have a hard landing as well. For additional coverage read China shares up in HK but fell in Shanghai on Tuesday.

City Telecom (NASDAQ:CTEL) has advanced five days in a row and ten days out of he last twelve trading sessions -suggesting the stock will have to take a break. For a technical analysis of the situation read Oversold CTEL rocks the house.

Shares of Baidu.com (NASDAQ:BIDU) advanced $10.07 on Monday following news of Google's exit  from China. While Google is trying to circumvent Chinese censorship by moving operations to Hong Kong, it is far from certain that Chinese authorities will not retaliate, further diminishing Google's footprint in China. Baidu.com (NASDAQ:BIDU) commences two third of the Chinese search market already leaving no doubts about who will grab market share from Google.

Most overbought China stocks

OB-2010323


Fuqi International (NASDAQ:FUQI) remains the most strikingly oversold China ADR today. While a bounce back up would make perfect sense, its chances are shrinking by the passing of each day. HQ Sustainable Maritime (AMEX:HQS) was just as oversold as FUQI until yesterday but thanks to a 4% rally her shares moved away from theoretical lows. Don't expect much from HQS today.

Linktone Ltd. (NASDAQ:LTON) fell -8% following 2009 Q4 earnings results last Friday and continued to show weakness the next trading day. The stock is still trading within her trading envelope suggesting more downside is possible.

China Green Agriculture, Inc. (NYSE:CGA) is similar to China BAK Battery (NASDAQ:CBAK) from a technical point of view - more downside is possible says the oversold monitor below.

Most oversold China stocks

OS-2010323

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.

aexpl-obos



If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
Reddit! Del.icio.us! Mixx! Free and Open Source Software News Google! Live! Facebook! StumbleUpon! TwitThis Joomla Free PHP
 

!!! CHINAVESTOR.COM is for SALE !!!

BUY this domain with all its credentials. Chinavestor.com has been added to Google News and Finance since 2008! Huge web traffic upside potential! Website is optimized for Chinese stocks but can easily be tweaked. Contact Seller Here

sale1
G_news
Check out The Benefits of Getting into Google News!

Free weekly newsletter

Get hot China stock news every Monday