April 21, 2010 (Chinavestor) New Oriental Education (NYSE:EDU) jumped to the top of the overbought monitor after earnings release. The monitor caught unusual momentum of Cogo Group (NASDAQ:COGO), WuXi Pharmatech (NYSE:WX) and China Finance Online (NASDAQ:JRJC) as well.
Details: New Oriental Education Corp. (NYSE:EDU) reported strong revenue and earnings growth compared to last year, sending shares of the company up +8.5% for the day. But next quarter revenue guidance is below that of the current level, suggesting the rally might not last too long. New Oriental enjoys a ride after quarterly earnings.
Shares of Cogo Group Inc. (NASDAQ:COGO) advanced +5.3% on Tuesday, a sort of run-up before earnings release, scheduled for May 6 after the close. This is in sharp contrast to China BAK Battery (NASDAQ:CBAK), a company that will release earnings on April 26 - and the stock tanked.
WuXi Pharmatech (NYSE:WX) advanced over 8% in the last five trading session - but is not overbought yet.
China Finance Online (NASDAQ:JRJC) bottomed out on Monday and rallied over 4% yesterday - but the stock is still within her trading envelope, suggesting the rally may be well extended.
Most overbought China stocks list
Chinese real estate companies did just all right in Shanghai earlier today, suggesting weakness for China Real Estate Information Corporation (NASDAQ:CRIC) may last. The stock bounced back off earlier lows but don't expect it to fully recover just yet.
China Natural Resources Inc. (NASDAQ:CHNR) is almost oversold and with a little bounce back on Tuesday the stock probably hit bottom.
Qiao Xing Universal Telephone (NASDAQ:XING) has been very volatile in the past and thus it's hard to predict where the stock is going to go from here. Despite significant losses, more downside is possible!
China BAK Battery (NASDAQ:CBAK) is showing weakness ahead of earnings - not a good sign. But risky investors may snap up shares of the company on the cheap - should earnings beat estimates.
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.