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

China solars ready for correction

E-mail Print PDF

decline3 December 9, 2011 (Chinavestor) LDK Solar (NYSE:LDK) made another run on Thursday, sending the stock to overbought extremes. That said the stock is ready for a pullback. Suntech Power (NYSE:STP) and Yingli Green Energy (NYSE:YGE) are less vulnerable from a technical point of view. Trina Solar (NYSE:TSL) is way back on the overbought monitor.

But investors have to remember that stocks can't really fight the market. That said, should LDK Solar (N YSE:LDK) fall back, the rest is expected to follow, albeit to a lesser degree. Trina Solar (NYSE:TSL) has the least downside but Yingli Green Energy (NYSE:YGE) and Suntech Power (NYSE:STP) are more susceptible to downside risk. Again, LDK Solar (NYSE:LDK) is overbought and is expected to take a breather.

Just a quick reminder: we said yesterday that solar stocks can go higher after the pullback earlier the week - and this is what LDK Solar (NYSE:LDK) did.

OB_20111209

With no stock extremes on the oversold end of the China stock universe, today's report doesn't have trading stocks to follow.

OS_20111209

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