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

Overbought China Stocks at the Dawn of 2011

E-mail Print PDF

Shanghai_2 January 3, 2011 (Chinavestor) There is a lot of excitement around Chinese stocks the first day in the new year. The number of overbought and stocks with strong momentum is clearly on the rise from last year, suggesting investors are exuberant about 2011.

Real estate stocks are on fire, evidenced by the significant surge by China Infrastructure Investment Corp (NASDAQ:CIIC) and China Housing & Land Development, Inc. (NASDAQ:CHLN). Noah Education Holdings Ltd. (NYSE:NED) and Qiao Xing Universal Resources, Inc. (NASDAQ:XING) continued to be a developing story overshadowing China Techfaith Wireless Comm. Tech. Ltd (NASDAQ:CNTF) and Actions Semiconductor Co., Ltd. (NASDAQ:ACTS).

The real story from last Friday belongs to Chinese real estate developers. China Infrastructure Investment Corp (NASDAQ:CIIC) surged 11.61% last Friday as investors embraced the sector on valuation and outlook for 2011.

Noah Education Holdings Ltd. (NYSE:NED) jumped 8.16% last Friday with significant increase in vilume, suggesting the rally is here to stay. The stock fell over 50% last year, making it one of trhe worst performers of the year. But sector rotation has helped education stocks as the year came to an end, lifting Noah Education Holdings Ltd. (NYSE:NED) and industry leader New Oriental Education & Tech. Group Inc (NYSE:EDU).

Rare earth quota helped lift Qiao Xing Universal Resources, Inc. (NASDAQ:XING)last year and is looking good along other resource plays on Monday.

Actions Semiconductor Co., Ltd. (NASDAQ:ACTS) is overbought at the moment and is expected to start the new year with surrendering some of the gains from last year.

OB_2010113

Interestingly, Baidu.com Inc. (NASDAQ:BIDU) continues to lead the oversold China stock list. Chinese internet stocks have suffered heavily in December of 2011 with Baidu.com Inc. (NASDAQ:BIDU) no exception. But value investors may find BIDU attractive under $100 for the mid term.

OS_201113

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