Below we have run the 30 largest Chinese ADRs traded on US exchanges through our Bespoke trading range screen. The list is sorted by market cap from largest to smallest. For each stock, the dot represents where it’s currently trading, while the tail end represents where it was trading one week ago. The black vertical “N” line represents the stock’s 50-day moving average, and moves into the red or green zone are considered overbought or oversold.
While Chinese stocks have pulled back over the last week or two, they’re still mostly trading in overbought territory. Of the 30 ADRs shown below, 17 are overbought, while just 2 are oversold (BIDU, MPEL). You can see the momentum swing lower very clearly in the screen. Instead of green dots to the right of the tail, most names are showing up red with dots to the left of the tail. Just a few stocks have moved higher within their trading ranges over the last week, and the big one is Alibaba (BABA), which is the largest stock on the list. BABA has been stuck in a downtrend for months now after an initial move higher following its IPO. Yesterday the stock finally saw a bounce following its earnings report, and it moved from oversold to overbought in a day. BABA shareholders are hoping this is the start of a new uptrend.
For those of you interested in Chinese stocks, over at Bespoke Premium and Bespoke Institutional we’ve just begun publishing a Chinese ADRs report that covers a range of 75 companies traded on US exchanges. This month’s report is due out later today. Sign up for a 5-day free trial now to receive the report in your inbox today.