April 9, 2014 (Chinavestor) NASDAQ and NYSE listed Chinese stocks piggybacked the tech rally on Tuesday and made a strong comeback.NYSE listed Chinese technology stocks firmed up just as much.
The largest NASDAQ listed Chinese stock, Baidu Inc. (NASDAQ:BIDU) jumped $7.45 or 5.19%, lifting the rest of the internet sector. Sina Corp. (NASDAQ:SINA), the second largest Chinese internet portal by traffic, advanced 3.19% and Sohu.com Inc. (NASDAQ:SOHU), the fourth largest such enterprise, rose 5.11%. China's internet travel agent, Ctrip.com International (NASDAQ:CTRP) jumped $5.23 or 10.4%!
NYSE listed 58.com Inc. (NYSE:WUBA) surged $5.62 or 14.86% after 30 days of suffering. The stock is still down over 25% for a month. 500.com Ltd. (NYSE:WBAI), another NYSE listed tech stock, advanced $3.10 or 8.96%.
See best and worst Chinese stocks on the NYSE and NASDAQ on April 8, Tuesday.
The big Chinese technology rally didn't make these stocks overbought though. Most of them were oversold before the pop on Tuesday. The most dramatic change on the oversold China stock list is their absence. Sohu.com Inc. (NASDAQ:SOHU), Youku Tudou (NYSE:YOKU), Sina Corp. (NASDAQ:SINA), Seaspan Corp. (NYSE:SSW), and Qihoo 360 Technology (NYSE:QIHU) all moved away from extreme oversold position. WuXi Pharmatech (NYSE:WX) failed to gain traction though and is still considered oversold. See following chart for details.
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.