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

BIDU, SPRD, WX and stock extremes

E-mail Print PDF

advance9 November 15, 2012 (Chinavestor) There are a good number of stock extremes on Thursday. Baidu.com Inc. (NASDAQ:BIDU) and Spreadtrum Communications (NASDAQ:SPRD) are extremely oversold while less liquid WuXi Pharma (NYSE:WX) is extremely overbought. This latter one is trading at theoretical highs and is subject to a technical correction. A couple of other stocks made unusual moves, like Focus Media Holdings (NASDAQ:FMCN) and China Digital TV Hold. (NYSE:STV), but these stocks haven't approached theoretical highs yet.Visit the first chart below to assess overbought stocks.

Oversold stocks are on the second chart below.

 

OB_20121115

Spreadtrum Communications (NASDAQ:SPRD) continued to slip after last Friday's dive and is trading at extreme oversold position. So is Baidu.com Inc. (NASDAQ:BIDU), a stock that is nearing the $90 range. Both stocks are oversold and are ripe for a comeback, at least temporarily, according to the following chart.

Other recent "big losers" include China Unicom (NYSE:CHU), China Telecom (NYSE:CHA), and Trina Solar (NYSE:TSL), among others. 

OS_20121115

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