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 stocks in narrow range before 2012

E-mail Print PDF

narrow_range2 December 30, 2011 (Chinavestor) Don't be fooled by the surprise advance of Simcere Pharma (NYSE:SCR) or China Sunergy (NASDAQ:CSUND) on the overbought screen. Both stocks have low trading volume but SCR has a much better trading quality than CSUND.  That said there are no overbought China stock  extremes in the last trading day of the year. Stocks with upside potential continue to be those of good technical readings: Seaspan Corp. (NYSE:SSW), China XD Plastics (NASDAQ:CXDC) and Sinopec (NYSE:SNP). Stocks of interest on the oversold screen include NetEase.com Inc. (NASDAQ:NTES), Sina Corp. (NASDAQ:SINA) and China Telecom (NYSE:CHA).

Back to the overbought screen. Trading is thin in between the Holidays and this is clearly reflected on the overbought monitor. The indicator picked up the 10% surge of Simcere Pharma (NYSE:SCR) earlier the week. The stock took a breather on Thursday leaving open the door for more upside.

Momentum stocks with sound 50-DMA and 200-DMA reading include Seaspan Corp. (NYSE:SSW), China XD Plastics (NASDAQ:CXDC), ChinaCast Education (NASDAQ:CAST), Fushi Copperweld (NASDAQ:FSIN), Huaneng Power Int. (NYSE:HNP) and Sinopec (NYSE:SNP) among stocks on the overbought screen.

OB_20111230

It is hard to find a stock extreme on the oversold indicator as well. NetEase.com Inc. (NASDAQ:NTES) is trading below its trading envelope and is a value buy at the moment. Ills of Sina Corp. (NASDAQ:SINA) are prevailing and the stock is under appreciated at the moment. China Telecom (NYSE:CHA) is also on the list but again, is far from being oversold. .

OS_20111230

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