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

Overbought and oversold China stocks to watch on Friday

E-mail Print PDF

obos-6-10-tumb April 16, 2010 (Chinavestor) Vulnerable stocks on the overbought screen include China Mobile (NYSE:CHL), Changyou.com (NASDAQ:CYOU) and five Chinese solar makers: Yingli Green Energy Holdings (NYSE:YGE), Suntech Power (NYSE:STP), LDK Solar (NYSE:LDK), Trina Solar (NYSE:TSL) and Solarfun Power Holdings (NASDAQ:SOLF).

Extreme stocks on the oversold end of the China stock universe include Perfect World (NASDAQ:PWRD), China Infrastructure Investment Corp (NASDAQ:CIIC), China Natural Resources Inc. (NASDAQ:CHNR).

Details: China Mobile (NYSE:CHL) is in trouble for the following reasons: index futures point to a lower opening, H-shares of the company (HKG:0941) fell -2.2% in Hong Kong earlier today and finally, the stock is overbought...

Changyou.com (NASDAQ:CYOU) hasn't reached theoretical highs yet but the sudden increase from $31.6 to $34 in two days suggests the move is highly unusual and calls for a breather.

Yingli Green Energy (NYSE:YGE) is similar to Changyou.com (NASDAQ:CYOU) from an overbought point of view- a sudden increase might lead a technician to believe that a security is overbought.  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.

LDK Solar (NYSE:LDK) is less extreme than YGE in terms of a sharp advance but has been approaching theoretical highs - and became vulnerable. Suntech Power (NYSE:STP) is just as close to TeHi as LDK Solar (NYSE:LDK) is and the same is true: it is time to take a breather. Solarfun Power Holdings (NASDAQ:SOLF) and Trina Solar (NYSE:TSL) are less overbought but they will not be able to fight the market. When the sector comes under pressure, even Trina Solar (NYSE:TSL) don't have a chance.

Most overbought China stocks

OB_2010416

Perfect World (NASDAQ:PWRD) has fallen too much , too fast - suggests the oversold monitor this morning. There is a rotation taking place within the sector - at the expense of Perfect World (NASDAQ:PWRD). Changyou.com (NASDAQ:CYOU) is overbought while PWRD is oversold. This situation won't last for too long, according to technical indicators. Time has come to rotate out of CYOU now into PWRD. Just watch!

China Infrastructure Investment Corp (NASDAQ:CIIC) is the closest to theoretical lows - but the worst may just not be over. Low volume, deteriorating price... there isn't much hope for the stock for the short run...

China Natural Resources Inc. (NASDAQ:CHNR) fell significantly in the last eight trading sessions - but there is more to come. The stock price is just under the trading envelope suggesting more downside is possible. Don't bet on a quick recovery just yet.

City Telecom (NASDAQ:CTEL) has been enjoying a tremendous run in the last 52 week and beyond. Don't expect this stock staying oversold for a long time. It was time to take a breather but the rally might resume at any time...

Most oversold China stocks

OS_2010416

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