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 stock xtremes on the rise in Jan

E-mail Print PDF

advance8 January 9, 2012 (Chinavestor) Last week's rally sent a good number of China stocks to an overbought extreme position. Zhongpin Inc. (NASDAQ:HOGS) and China XD Plastics (NASDAQ:CXDC) reached theoretical highs and are ready to take a breather. American Oriental Bioengineering (NYSE:AOB), cleared a lot of ground last week along with Vanceinfo Technologies (NYSE:VIT) and Fushi Copperweld (NASDAQ:FSIN). But it wasn't a cake walk for everybody as stock price of Spreadtrum Communications (NASDAQ:SPTRD) and 51job Inc. (NASDAQ:JOBS) testify. Despite the significant decline, none of them are oversold yet.

Going forward, investors have to exercise caution with stocks that reach theoretical highs. Zhongpin Inc. (NASDAQ:HOGS) surged 15% in the last two trading days of the week, a highly unusual move in the last 52 weeks. China food stocks are explosive, a fact that Zhongpin Inc. (NASDAQ:HOGS) demonstrated.

China XD Plastics (NASDAQ:CXDC) has been outperforming the broad market for over three months but it in the danger zone right now. Short term upside is limited, according to the overbought chart.

Good news is that despite latest advance, Vanceinfo Technologies (NYSE:VIT) and Fushi Copperweld (NASDAQ:FSIN) are not overbought yet. Both stocks advanced to the high end of their trading envelope, leaving more room to the upside.

OB_20120109

Spreadtrum Communications (NASDAQ:SPTRD) is trading closest to theoretical lows but more downside is possible. The stock hasn't reached theoretical lows yet. 51job Inc. (NASDAQ:JOBS) fell 14% last week and is trading at 52 week lows. Upside is possible but that may have to wait until investors get some insight into earnings.

OS_20120109

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