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

HPQ, JNJ, CVX among most extreme Dow components

E-mail Print PDF

think_1 January 17, 2014 (Chinavestor) There are some changes among all 30 Dow Jones Industrial Average (INDEXDJX:.DJI) components on the overbought chart. Merck & Co (NYSE:MRK) is not the most overbought Dow component this morning but Hewlett-Paclard (NYSE:HPQ) is. Fact of the matter is that technically neither Merck & Co (NYSE:MRK) nor Hewlett-Packard (NYSE:HPQ) are considered overbought. Yet they are on top of the chart because they have approached theoretical highs the most.

Another stock sticking out is Johnson & Johnson (NYSE:JNJ) for its advanced from below its trading envelope to above it thanks to a surge at the beginning of the year. Remember, the size of the arrow represents the change from closing price two weeks ago vs. last closing price. Scrolling down to the second chart reveals the most oversold components of the Dow Jones Industrial Average (INDEXDJX:.DJI). Chevron Corp. (NYSE:CVX) fell from $124.4 to $118.8 in two weeks and such a sharp decline is highly unusual for this stock. This move pushed Chevron (NYSE:CVX) to the top among most oversold Dow Jones Industrial Average (INDEXDJX:.DJI) components.

Talking about the Dow Jones Industrial Average (INDEXDJX:.DJI) itself. The index fell below its price two weeks ago and is trending back to its trading envelope. The Dow Jones Industrial Average (INDEXDJX:.DJI) has been trading in a narrow range lately as the markets are trying to find direction after last Friday's weak jobs numbers.

Finally, scroll down to the bottom of this article to find definitions and explanation how to read the overbought / oversold indicator.

OB_20140117

OS_20140117

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