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PWRD, COGO are overbought!

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watch_out March 19, 2012 (Chinavestor) If anything, Perfect World (NASDAQ:PWRD) and Cogo Group (NASDAQ:COGO) are overbought this morning. Both stocks stepped out of their trading ranges and are trading at extremes. But more upside looks possible for stocks like New Oriental Education (NYSE:EDU), 51job Inc. (NASDAQ:JOBS) and Sina Corp. (NASDAQ:SINA), as the following overbought screen testifies.

OB_20120319

Jiayuan.com (NASDAQ:DATE) continues to lead the oversold list today. Despite heavy losses, more downside is possible. This is true for ChinaCast Edu (NASDAQ:CAST), Qiao Xing Univ. (NASDAQ:SING) and Deer Consumer Products (NASDAQ:DEER) as well.

OS_20120319

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



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