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

CEA, CHL overbought but internet stocks have upside

E-mail Print PDF

wireless July 27, 2011 (Chinavestor) Large cap Chinese stocks continue to lead the overbought monitor. China Eastern Airlines (NYSE:CEA) and China Mobile (NYSE:CHL) have approached theoretical highs and are ready to take a breather. Baidu.com Inc. (NASDAQ:BIDU) lifted the internet sector as is evidenced by the strong position of 51job Inc. (NASDAQ:JOBS), Home Inns & Hotels Management (NASDAQ:HMIN), NetEase.com Inc. (NASDAQ:NTES) and Ctrip.com Int. (NASDAQ:CTRP) on the overbought screen. Risk appetite is back for China Green Agriculture (NYSE:CGA) is back at play as well.

Smaller names dominate the oversold screen today. One of the most remarkable changes though came from a large cap stock, Guangshen Railway (NYSE:GSH), as it bounced back after reaching an extreme oversold position a day earlier.

China Eastern Airline (NYSE:CEA) and China Mobile (NYSE:CHL) look very similar on the overbought screen. Both stocks have advanced all the way to theoretical highs and thus are susceptible to a break. But overbought is not the same as bearish, but it refers to a position where stocks typically take a break. More upside is possible for the stocks as long as fundamentals are right.

Small cap China Green Agriculture (NYSE:CGA) is trading at the high en of its trading envelope and close to theoretical highs at the same time. This implies the stock sufferers from a long loosing streak but is making a quick comeback.Chinese reverse merger stocks gave a lot of headaches to U.S. investors earlier the year but fears are subsiding, as is evidenced by the resurgence of this Chinese fertilizer maker.

Baidu.com Inc. (NASDAQ:BIDU), the largest NASDAQ listed China play by market value, reported better than expected earnings just yesterday. This helped lift the rest of the sector.

Online job market co., 51job Inc. (NASDAQ:JOBS), is looking to have sustainable momentum just like Home Inns & Hotels Management (NASDAQ:HMIN). The Chinese travel sector is looking good as disposable income of ordinary Chinese people continues to rise.This bodes well for Ctrip.com Int. (NASDAQ:CTRP), the largest online travel booking company in China.

Online game developer and operator NetEase.com Inc. (NASDAQ:NTES) is looking good as well, despite recent gains. The stock is still far from theoretical highs, leaving ample room for upside.

OB_2011727

Guangshen Railway (NYSE:GSH) fell hard along the rest of the sector in the wake of the deadly bullet train accident over the weekend. But as predicted, the stock bounced back up after reaching an extreme oversold position.

OS_2011727

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