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

Sinopec and other overbought China stocks

E-mail Print PDF

economy2 February 1, 2011 (Chinavestor) As the earnings season kicks in high gear, the number of China stocks trading at extremes is on the rise. Sinopec (NYSE:SNP) has reached theoretical high and is in the danger zone. AsiaInfo-Linkage (NASDAQ:ASIA) is up following superb earnings and outlook, yet the stretch may be excessive, according to the overbought chart below. Changyou.com Ltd. (NASDAQ:CYOU) and Sohu.com Inc. (NASDAQ:CYOU) reported sound earnings with sound outlook, yet they are far from extremes. Baidu.com Inc. (NASDAQ:BIDU) is a developing story, trading sharply higher after revealing record numbers after the close. Spreadtrum Communications, Inc (NASDAQ:SPRD) is not overbought despite a significant advance. China Fire & Security Group, Inc (NASDAQ:CFSG) is oversold, the only China play trading at extreme on the oversold end.

Downside risk exceeds upside potential for Sinopec (NYSE:SNP). Large cap stocks barely get overbought to extremes, suggesting SNP will have to cool off now.

AsiaInfo-Linkage (NASDAQ:ASIA) is different from Sinopec for two reasons. For one, the jump on Monday is earnings related and for two, the stock is not a large cap play but a volatile NASDAQ listing. Today's move is pushing the stock closer to the danger zone though more upside is possible. Nevertheless investors have to exercise caution from here on.

Changyou.com Ltd. (NASDAQ:CYOU) and Sohu.com Inc. (NASDAQ:CYOU) are far from overbought despite a sizable lift on Monday. Both stocks have more upside left, according to the overbought chart below.

Baidu.com Inc. (NASDAQ:BIDU) is not on the overbought chart yet but is making a move after reporting a gangbusters fourth quarter.

Spreadtrum Communications, Inc (NASDAQ:SPRD) is looking good despite a sizable gain.

OB_201121

China Fire & Security Group (NASDAQ:CFSG) became oversold after a 5% drop on Monday. But the rest of the stocks on the oversold screen are not trading at extremes yet, suggesting the slide may well continue for EDU, CRIC and the rest.

OS_201121

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