May 10, 2010 (Chinavestor) We all know that timing the market is key - but it required some serious guts to go long on Friday afternoon. But if you did, you're up to a handsome profits in return, all you had to do was to look up the Oversold China stocks cry for correction article.
Again, we're going to publish the most oversold China stocks, see chart below. However the list covers less than 20 stocks when in fact a third of all Chinese ADRs are poised to record some serious gains on Monday.
Fundamentally solid yet oversold stocks are: Ctrip.com (NASDAQ:CTRP), China Automotive Systems (NASDAQ:CAAS), City Telecom (NASDAQ:CTEL), Sohu.com (NASDAQ:SOHU), and AsiaInfo Holdings (NASDAQ:ASIA).
Solar, energy and resource plays are going to do well - except for gold miners.
Most oversold China stock list
The overbought end of the China stock universe has no action. 51job Inc. (NASDAQ:JOBS) eked out some gain last week thanks to a better than experted 2010 Q1 earnings. 51job Inc. ready to rumble on 2010 Q1 growth.
For more upcoming earnings, read China stock earnings calendar, May 10-14.
Most overbought 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.