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Oversold internet stock list

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cash1 September 23, 2011 (Chinavestor) Baidu.com Inc. (NASDAQ:BIDU) and Sohu.com Inc. (NASDAQ:SOHU) became oversold to the extremes. Other oversold stocks to watch at the end of the week include Changyou.com Inc. (NASDAQ:CYOU), NetEase.com Inc. (NASDAQ:NTES) and Sina Corp. (NASDAQ:SINA) from the internet sector. China Eastern Airlines (NYSE:CEA) and China Southern Airlines (NYSE:ZNH) are also stocks that offer instant upside potential.Needless to say, there is not a single overbought China stock.

Technical indicators work best for high profile stocks. This is the case with Baidu.com Inc. (NASDAQ:BIDU) for example. The stock got oversold to the extremes, signalling high chances of a quick turnaround.

 

Sohu.com Inc. (NASDAQ:SOHU) is another high profile Chinese internet stock that is ready to make a comeback. Both BIDU and SINA are oversold to the extremes, leaving no room to the downside.

NetEase.com Inc. (NASDAQ:NTES) looks very similar to Sohu.com Inc. (NASDAQ:SOHU) on the oversold screen. Both stocks have fallen all the way close to theoretical lows and are below their trading ranges.

Online game operators have fallen victim to a lower revenue guidance from Perfect World (NASDAQ:PWRD). The news didn't stop at Perfect World (NASDAQ:PWRD), but sent the rest of the sector lower. Based on latest price developments, investors wonder if Changyou.com Ltd. (NASDAQ:CYOU) would be next lowering revenue guidance.

Sina Corp. (NASDAQ:SINA) fell hard earlier the week after introducing censorship at its popular Twitter like instant message service, Weibo.com. But the decline is not fully explained by this news alone, the stock fell along industry lines. Chances are that Sina Corp. (NASDAQ:SINA) will do well on the back of BIDU's and SOHU's resurgence.

Chinese airliners offer a chance to make money as well. Chcina Eastern Airlines (NYSE:CEA) is way oversold just like its larger rival, China Southern Airlines (NYSE:ZNH). Large cap sstocks don't ususally get oversold to the extremes, suggesting both airliners will make some ground back on Friday.

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It was hard to find China stocks that advanced over the past week, not to mention overbought ones. Most of the action is taking place on the oversold end of the China stock universe today.

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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.


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