July 19, 2012 (Chinavestor) Chinese airliners look ready for some more upside after latest pullback. China Eastern Airlines (NYSE:CEA) as well as its larger rival China Southern Airlines (NYSE:ZNH) moved away theoretical highs on Wednesday. Again, don't forget to scroll down to find oversold stock extremes that are likely to move on Thursday. E-House Holdings (NYSE:EJ), Sohu.com Inc. (NASDAQ:SOHU) and 51job Inc. (NASDAQ:JOBS) are among those possible effected.
E-House Holdings (NYSE:EJ) is clearly oversold and looks very similar to Sohu.com (NASDAQ:SOHU) on Wednesday. The stock is likely to hit bottom according to the oversold monitor.
Despite some gains on Wednesday, Sohu.com Inc. (NASDAQ:SOHU) and 51job Inc. (NASDAQ:JOBS) are ready for more upside according to the chart below. Both stocks have fallen too fast, too much.
Tudou Holding (NASDAQ:TUDO) and Youku Inc. (NYSE:YOKU) surged on Wednesday, effectively moving them away from extreme oversold position. While more upside is possible investors should not take that granted.
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.
If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
