July 13, 2012 (Chinavestor) There are three stocks on top of the overbought monitor with unusual moves. China Kanghui (NYSE:KH) is overbought for it advanced too fast, too much and has approached theoretical highs. Synutra International (NASDAQ:SYUT) is not overbought but stepped out of its trading envelope. Similarly to Synutra, Zhongpin Inc. (NASDAQ:HOGS) is not overbought after a pull back yesterday.
To find more stock extremes, scroll down to the oversold monitor, please.
Despite a bounce back up on Thursday, Tudou Holding (NASDAQ:TUDO) is on top of the oversold chart. The stock is not oversold to the extremes but has been trading in a narrow range. Yet it is trading close to theoretical lows and holds significant upside potential.
Similarly to Tudou Holding (NASDAQ:TUDO), Youku Inc. (NYSE:YOKU) has a lot more upside potential than downside risk. Youku Inc. (NYSE:YOKU) advanced on Thursday despite an overall market weakness, a good sign for trading on Friday.
3SBio (NASDAQ:SSRX) just fell below its trading range and may continue to slide. The stock hasn't reached theoretical lows yet. Seaspan Corp. (NYSE:SSW) looks similar to 3SBio Inc. (NASDAQ:SSRX) on the oversold chart.
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.