February 20, 2014 (Chinavestor) China's largest oil refiner, Sinopec (NYSE:SNP) jumped $6.49 on Wednesday, by far the most among Chinese ADRs. Petrochina Co. (NYSE:PTR) and Sinopec Shanghai Petrochemical (NYSE:SHI) followed SNP from a safe distance. Home Inns & Hotels Management (NASDAQ:HMIN), SouFun Holdings (NYSE:SFUN) and Sohu.com Inc. (NASDAQ:SOHU) were able to hang on to previous gains. But it wasn't a cake walk for everyone. Ctrip.com Int. (NASDAQ:CTRP) fell $2.37 followed closely by CNOOC Ltd. (NYSE:CEO). Youku Tudou (NYSE:YOKU) and NetEase Inc. (NASDAQ:NTES) fell slightly.
See following chart to see yesterday's big movers.
Good news is that despite a sizable advance, Sinopec (NYSE:SNP) is not considered overbought. The same goes for Petrochina Co. Ltd. (NYSE:PTR). None of these oil giants are among 25 most overbought Chinese stocks. In fact, it is hard to find any liquid, larger cap China stock on the overbought screen that moved significantly yesterday.
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.