June 21, 2012 (Chinavestor) NetEase.com Inc. (NASDAQ:NTES) got off the top of the overbought chart after a pullback on Wednesday. The stock is ready for more upside as far as technicals are concerned.
Chinese solar stocks continue to look good on the following chart, neither Canadian Solar (NASDAQ:CSIQ) nor Hanwha Solarone (NASDAQ:HSOL) has reached theoretical highs yet.
Notable stocks on the overbought screen include Mindray Medical (NYSE:MR), Youku Inc. (NYSE:YOKU) and Huaneng Power (NYSE:HNP), among others. Scroll down to the chart below to asses their technical reading.
There hasn't been much change on the oversold monitor since yesterday. Despite recent declines, more downside is possible for China Digital TV (NYSE:STV), eLong Inc. (NASDAQ:LONG )and Ata Inc. (NASDAQ:ATAI). CEDU and UTSI aren't out of the woods yet, either.
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.