Despite strong gain on Tuesday, none of these solar stocks are overbought. Looking at the most overbought stock screen, Telestone Technologies (NASDAQ:TSTC) is on top. The stock got a second wind after earnings, surging 15% in the past two days alone. Despite the unusual move, more upside is possible, according to the screen below.
China Unicom (NYSE:CHU) is looking to have sustainable momentum.
Yanzhou Coal Mining (NYSE:YZC) jumped over 6% on Tuesday but has additional room for upside. The stock hasn't reached theoretical highs yet.
There is no change among the top three oversold China stocks, except that VisionChina Media (NASDAQ:VISN) is now joined the group.
Surprise China Automotive Systems (NASDAQ:CAAS) is among the most overolsd Chinese stocks.
Solars, the most oversold sector last week, have improved substantially. Trina Solar (NYSE:TSL), Yingli Green Energy (NYSE:YGE) or JA Solar (NASDAQ:JASO) look anything but oversold at this point.
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.