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

Solars rally, more upside for short term

E-mail Print PDF

solar_5 October 1, 2010 (Chinavestor) One of the most dramatic change on the overbought screen for today is the resurgence of Chinese solar stocks. The rally is not as new to Yingli Green Energy (NYSE:YGE) and Trina Solar (NYSE:TSL) but Canadian Solar (NASDAQ:CSIQ) leaped too much forward, according to the overbought chart below. ShengdaTech Inc. (NASDAQ:SDTH) and Yanzhou Coal (NYSE:YZC) are ripe for profit taking. AirMedia Group Inc. (NASDAQ:AMCN) is looking vulnerable for the first day of October, according to the overbought monitor. Gushan Environmental Energy (NYSE:GU) is the most oversold China stock for the day, Changyou.com (NASDAQ:CYOU) being next. For details, scroll down to second part of the article.

We have been warning investors as of two days ago that Yanzhou Coal (NYSE:YZC), China's third largest coal miner, and ShengdaTech Inc. (NASDAQ:SDTH) are overbought. Both stocks might succumb to profit taking ASAP.

Solar stocks have enjoyed a late September rally on fundamentals. Investors realized the price advantage of Chinese solar makers on top of a relatively high oil price. Canadian Solar (NASDAQ:CSIQ) jumped 12.57 percent on Thursday, a little too much, too fast, according to the overbought monitor below. Trina Solar (NYSE:TSL) is looking more balanced thanks to a gradual increase.  The same is true for Yingli Green Energy (NYSE:YGE), another good size solar maker. All these stocks have approached theoretical highs, telling investors that downside risk is on the rise.

Another stock with unusual big advance is AirMedia Group Inc. (NASDAQ:AMCN). The stock advanced 17 percent just on Thursday and is up 58 percent since last Friday! Of course it is overbought and is ripe for a pullback.

OB_2010101

Gushan Environmental Energy (NYSE:GU), a Chinese bio-diesel producer, is the most oversold stock on the screen today. The bad news is that despite a significant fall, the stock is still trading close to its trading envelope, suggesting no bottom has been established yet.

Changyou.com (NASDAQ:CYOU) fell unusually hard for the week, shedding 7.5 percent just in four days. This is unusual and a short term correction is possible, suggests the oversold monitr below.

OS_2010101

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