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

SNP, HNP are vulnerable large caps

E-mail Print PDF

run November 9, 2011 (Chinavestor) Huaneng Power International (NYSE:HNP), China's largest independent power producer, surged to extreme overbought level. China Life Insurance (NYSE:LFC) pulled back but Sinopec (NYSE:SNP) remains overbought. Zhongpin Inc. (NASDAQ:HOGS) and Synutra Int. (NASDAQ:SYUT) are in the danger zone but overbought Telestone Technologies (NASDAQ:TSTC) pulled back, just as expected. There isn't much to see on the oversold screen albeit weak index futures and a 2011 Q3 mixed bag from Sina Corp. (NASDAQ:SINA) can send internet stocks back to the screen.

Sinopec (NYSE:SNP) and Huaneng Power (NYSE:HNP) are overbought stocks that are ready to take a breather. Both stocks reached theoretical highs and are trading way out of their trading envelope. Based on what China Life Insurance (NYSE:LFC) just did, Huaneng Power (NYSE:HNP) may extend gains for a day but downside risk exceeds upside potential.

Smaller cap Zhongpin Inc. (NASDAQ:HOGS) and Synutra International (NASDAQ:SYUT) are also stocks in the danger zone. With market sentiment turning negative, outlook for these stocks is dim.

Telestone Technologies (NASDAQ:TSTC) pulled back also after extreme overbought position earlier the week.

OB_20111109

AsiaInfo-Linkage (NASDAQ:ASIA) fell hard last week following weak 2011 Q3. Sina Corp. (NASDAQ:SINA) reported after the close yesterday and may send some internet stocks back to the screen. ASIA is not immune to downside either, as the oversold chart testifies.

OS_20111109

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.

aa_OBOS_expl_2weeks



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