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

Correction in May hurts large caps the most

E-mail Print PDF

decline May 4, 2011 (Chinavestor) A 5.99 percent jump in eLong (NASDAQ:LONG) was enough to sent the stock overbought. Part of the surprise position is a negative market day that sent internet stocks tumbling. SouFun Holdings (NASDAQ:SFUN) has been creeping higher on the overbought Chinese stock list.

Surprisingly, large cap NYSE listed Chinese stocks took the lead among oversold China stocks. Aluminum Corp. of China (NYSE:ACH) and Sinopec (NYSE:SNP) are oversold while the significant dive of Simcere Pharma (NYSE:SCR) and Silvercorp Metals (NYSE:SVM) call for a correction as well. Synutra Int. (NASDAQ:SYUT) may have hit bottom but a bounce back is not granted. Despite significant losses, outlook remains dim for China Life Insurance (NYSE:LFC), according to the oversold monitor.


Back to the overbought screen. First of all, there is no overbought China stock at the moment, technically speaking. eLong inc. (NASDAQ:LONG) is trading out of its trading range but is still far from theoretical highs.  American Dairy (NYSE:ADY) has upside left but a small stock like this can't fight the market. SouFun Holdings (NASDAQ:SFUN) has been trading in a narrow range lately, readying for more upside.

OB_201154

Resource stocks tumbled, hurting Aluminum Corp. of China (NYSE:ACH) and Silvercorp Metals (NYSE:SVM) the most. Sinopec (NYSE:SNP) is looking oversold along with ACH, suggesting the bottom is near.

Simcere Pharma (NYSE:SCR) experienced a significant correction and became oversold.

Synutra International (NASDAQ:SYUT) moved away from the most oversold position, suggesting the bottom is near.

And finally, China Life Insurance (NYSE:LFC), another large cap Chinese stock, remains in the danger zone despite sizable losses.

OS_201154

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.



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