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 stock extremes to watch on September 8

E-mail Print PDF

warning3 September 8, 2010 (Chinavestor) WSP Holdings (NYSE:WH) jumped 28 percent on Tuesday and is off the overbought chart, as expected. China BAK Battery (NASDAQ:CBAK) didn't go unnoticed after a 10.28 percent increase either. Both stocks are overbought in the danger zone. Wonder Auto Technology (NASDAQ:WATG) and China Medical Technology (NASDAQ:CMED) have advanced too fast, too much - according to the chart below. BMP Sunstone Corp. (NASDAQ:BJGP) rose over 18 percent in the last five trading sessions, a long stretch, but hasn't approached theoretical highs yet. Nevertheless the move is unusual and call for attention.

China Sky One Medical, Inc.(NASDAQ:CSKI) and Chain Mobile (NYSE:CHL) call for action on the oversold screen today.

But again, it's WSP Holdings (NYSE:WH) that is way out of the chart after a sudden 28 percent rise on Tuesday. The stock is out of the range and is clearly overbought. China BAK Battery (NASDAQ:CBAK) tacked on more than 10 percent on Tuesday, qualifying it to the top of the overbought indicator. Penny stock Xinhua Finance Media Limited (ADR) (NASDAQ:XSEL) rose more than CBAK in percentage terms but that's due to a low volume and to extreme low price.

A long stretch in Wonder Auto Technology (NASDAQ:WATG) calls for attention but the stock rallied after guiding higher and volume was strong. Another plus for WATG is that current stock price hasn't touchedĀ  theoretical highs yet. But upside potential looks increasingly limited for the short term.

High volume accompanying the rally of China Medical Technology (NASDAQ:CMED) suggest strong money flows will keep it from tumbling, nevertheless upside for the short run looks limited for this stock as well.

Gradual increase in the stock price of BMP Sunstone Corp. (NASDAQ:BJGP) is encouraging, plus the stock is far from theoretical highs. The next couple of days will be key in determining direction for next week.

OB_201098

Disappoinign financials sent China Sky One Medical, Inc.(NASDAQ:CSKI) tumbling over 30 percent in the Tuesday. While the move is huge, the stock has more diownside left, according to the oversold chart below. Any bounce back might be just a dead cat bounce, short term improvment doesn't seem supported.

China Mobile (NYSE:CHL) is suffering from a Vodaphone's plan to dump as much as 3.2 percent of CHL shares. Vodaphone is raising capital ahead of clashing with Indian tax authorities following the controlling stake purchase of India's largest mobile network from Hatchinson years earlier. Short term outlook for China Mobile (NYSE:CHL) looks dim.

OS_201098
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