Back to the overbought screen: Sinopec Shanghai Petrochemical (NYSE:SHI), a major Chinese ethylene and propylene producer, have enjoyed improving margins as the price of the crude fell.
Expectations run high for Home Inns & Hotels Management (NASDAQ:HMIN), a company that beat analyst estimates for the first quarter of 2010 and guided higher. Home Inns & Hotel delivers sound 2010 Q1. Besides current quarter, we highlighted the potential this company represented three month prior: Don't be goofed by Q4 results: Home Inn remains undervalued. On top of the free information, we placed HMIN on the Growth Portfolio as a result, delivering superb return for Chinavestor premium members.
Global Sources Ltd. (NASDAQ:GSOL) is far from overbought despite a 8 percent surge on Friday.
Chindex International (NASDAQ:CHDX) has been creeping higher for most of June but is trading still within her trading envelope. This is turn suggests more upside is a real possibility.
HQ Sustainable Maritime Industries, Inc. (AMEX:HQS) jumped 11 percent last Friday. While current stock price is far from theoretical highs such a sudden rally calls for a technical correction most of the time.
The oversold screen has been relatively unchanged in the past few days with Hurray! Holdings (NASDAQ:HRAY) taking the lead. But the stock is still trading far from theoretical lows suggesting the turnaround will have to wait.
The same is true for Linktone Ltd. (NASDAQ:LRTON), a stock that's been shunned by investors.
Synutra International (NASDAQ:SYUT) has been on the slide since June 11 with no end in sight... The stock price hasn't reached theoretical lows just yet...
Yanzhou Coal Mining (NYSE:YZC), a large Chinese coal miner, is on the oversold screen but will move to the spotlight today, suggest its H-share trading. The company fell 7.8 percent in Hong Kong (HKG:1171) earlier today...
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.