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

FEED and other China stock xtremes

E-mail Print PDF

record_1 July 21, 2011 (Chinavestor) China Mobile (NYSE:CHL) and AgFeed Industries (NASDAQ:FEED) are trading at extremes according to the overbought monitor. Stocks with sustainable momentum include China Southern Airlines (NYSE:ZNH), China Eastern Airlines (NYSE:CEA), Baidu.com Inc. (NASDAQ:BIDU), 51job Inc. (NASDAQ:JOBS) and NetEase.com Inc. (NASDAQ:NTES). Stocks of interest on the oversold screen include CNOOC Ltd. (NYSE:CEO) and Yanzhou Coal Mining (NYSE:YZC).

Back to the overbought screen. China Mobile (NYSE:CHL) has reached theoretical highs and is susceptib el to a correction. But given that the rally is fundamentally driven, e.g. superior 3G growth, the stock may not surrender gains easily.

AgFeed Industries (NASDAQ:FEED) is the stock that has more downside risk than upside potential. The stock went from $1.30 to $1.70 in five days and is clearly overbought.

Lower oil prices gave Chinese airliners a lift. China Southern Airlines (NYSE:ZNH) and China Eastern Airlines (NYSE:CEA) are looking good despite latest advances.

Chinese internet stocks gained some momentum lately but have a whole lot more upside left, according to the overbought monitor. Baidu.com Inc. (NASDAQ:BIDU) is trading far from theoretical highs despite a 5% advance in the past few days.

Another stock with upside potential is 51job Inc. (NASDAQ:JOBS) and NetEase.com Inc. (NASDAQ:NTES) from the internet sphere.

OB_2011721

Outlook remains dimm for CNOOC Ltd. (NYSE:CEO) despite some losses lately, according to the oversold monitor. China's third largest coal miner Yanzhou Coal Mining (NYSE:YZC) may enjoy a comeback though for the trading envelope has touched theoretical lows.

OS_2011721

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