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

Ctrip, Sina and stock extremes

E-mail Print PDF

risk_2 November 23, 2011 (Chinavestor) Except for some low volume small cap stocks, there is not much to learn from the overbought monitor this morning. Ctrip.com Int. (NASDAQ:CTRP), oversold stock to the extreme earlier the week, bounced off as expected. Sina Corp. (NASDAQ:SINA) is among the 25 most oversold China stocks at this moment. Changyou.com Ltd. (NASDAQ:CYOU) is oversold but as long as the rest of the sector is under pressure, upside looks limited.

OB_20111123

Looking at the most oversold China stock list below, Changyou.com Ltd. (NASDAQ:CYOU) is the first that comes to mind. The stock is trading close to theoretical lows suggesting upside potential exceeds downside risk. But things are different for China Automotive Systems (NASDAQ:CAAS) and Perfect World (NASDAQ:PWRD) for both stocks have not reached theoretical lows yet.

Ctrip.com International (NASDAQ:CTRP) moved away from extreme oversold position on Monday and Tuesday. While more upside is possible, downside risk is on the rise as well.

Sina Cirp. (NASDAQ:SINA) is not oversold but has traded in a narrwo range lately with a negatsive bias. Downside is possible.

OS_20111123

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