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

China stocks with upside potential, May 31

E-mail Print PDF

 

advance8 May 31, 2011 (Chinavestor) Stocks with sustainable momentum on the overbought screen include SouFun Holdings (NYSE:SFUN), Xinyuan Real Estate Co. (NYSE:XIN), China Unicom (NYSE:CHU), Melco Crown Entertainment (NASDAQ:MPEL) and Yanzhou Coal Mining (NYSE:YZC). WSP Holdings (NYSE:WH), Origin Agritech (NASDAQ:SEED) and Chindex International (NASDAQ:CHDX) have reached theoretical lows but most downside is possible for China Green Energy (NYSE:CGA).

 

Back to the overbought screen. New stock from last week on the overbought screen include SouFun Holdings (NYSE:SFUN). The stock is still within its trading range and is open for more upside.

Xinyuan Real Estate Co. (NYSE:XIN) had a couple of sound days last week but despite 17% run in the last two days, more upside is possible. The stock is far from theoretical highs and has just stepped out of its trading range.

China Unicom (NYSE:CHU) has been one of the best performing Chinese mobile stock YTD. The stock has just stepped out of its trading range and is far from overbought.

Melco Crown Entertainment (NASDAQ:MPEL), a great trading stock with ample volume, is back in town. When markets do well, so is Melco. More upside is possible but investors have to be careful and taking profits on time. The stock is volatile and can evaporate gains just as quickly.

Yanzhou Coal Mining (NYSE:YZC) has shown unusual momentum lately but again the stock is far from theoretical highs and has more upside potential left.

OB_2011531

Looking at the most oversold China stocks this morning,  WSP Holdings (NYSE:WH), Origin Agritech (NASDAQ:SEED) and Chindex International (NASDAQ:CHDX) are looking alike. But despite a technical weakness, fundamentals are behind the fall and as such, a bounce back up may have to wait.

Despite a 30% plus dive last week, more downside is looming around China Green Energy (NYSE:CGA). The stock fell as speculation spread that the company has done some financial wrongdoings. The stock is far from theoretical lows and is susceptible for more beating.

OS_2011531

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