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

Is there more upside for China IT stocks?

E-mail Print PDF

bubble_2 April 14, 2011 (Chinavestor) With so much volatility lately, technical indicators are difficult to read. Yet our article "China internet stocks ready to roll" published before the market open yesterday was a home run! The overbought monitor picked up momentum of China Southern Airlines (NYSE:ZNH) and China Eastern Airlines (NYSE:CEA) as well as Baidu.com (NASDAQ:BIDU). But despite large gains on Wednesday, Sina Corp. (NASDAQ:SINA) is not trading at extremes. This is similar to Sohu.com Inc. (NASDAQ:SOHU) and 51job Inc. (NASDAQ:JOBS), stocks that advanced strongly yesterday yet are hardly visible on the overbought screen.

But the rally for airliners may have come to an end as oil prices bounced back up. Short term outlook is thus uncertain for China eastern Airlines (NYSE:CEA) and China Southern Airlines (NYSE:ZNH).

Investors were snapping up shares of liquid, large cap NASDAQ listed Chinese companies. Sina Corp. (NASDAQ:SINA) closed just below $120, close to the all time high. Baidu.com Inc. (NASDAQ:BIDU) enjoyed strong money flows as well. Shares of the company at $145 don't seem to be overbought, similarly to Sina Corp. (NASDAQ:SINA).

51job inc. (NASDAQ:JOBS) and Sohu.com Inc. (NASDAQ:SOHU) rode on the back of market sentiment as well - yet are far from overbought.

China Unicom (NYSE:CHU) is the most overbought large cap NYSE stock, making it susceptible to profit taking. WSP Holding (NYSE:WH) remains overbought albeit small volume makes technical indicators less accurate.

OB_2011414

Xinyuan Real Estate Co. (NYSE:XIN) is the most oversold China play today. Nam Tai Electronics (NYSE:NTE) is trading at theoretical lows as well. Both stocks might pop any minute, the oversold indicator suggests.

General Steel (NYSE:GSI) isn't out of the woods yet, according to the oversold chart below.

OS_2011414

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