August 31, 2011 (Chinavestor) Small cap, low volume China stocks continue to shine on the overbought chart. Agria Corp. (NYSE:GRO) and China Natural Resources (NASDAQ:CNHR) have reached theoretical highs and are in a very vulnerable position right now. China Infrastructure Development (NASDAQ:CIIC) advanced too much, too fast as well, according to the overbought chart. But China Unicom (NYSE:CHU) is looking good despite a 15% rise since last Wednesday. China Mobile (NYSE:CHL) seems to lost some of its shine though.

Most China stocks on the oversold screen seems to get stuck in the rut. Despite losses, the indicator does not suggest an imminent bounce back for Synutra Int. (NASDAQ:SYUT) o for China Real Estate (NASDAQ:CRIC). The situation is different from earlier the week when Changyou.com Inc. (NASDAQ:CYOU) was oversold to the extremes and made a nice comeback.

Back to the overbought screen. The tree China stocks on the chart are clearly overbought. This doesn't mean these stocks will fall but indicates that their upside is limited and the most likely scenario for them is to level off. Agria Corp. (NYSE:GRO) and China Natural Resources (NASDAQ:CNHR) have reached theoretical highs and are ready for a technical correction.

While not at theoretical highs yet, the situation is similar for China Infrastructure Development (NASDAQ:CIIC) from a technical point of view.

Despite a sizable rise more upside looks possible for China Unicom (NYSE:CHU) though. The stock has just stepped above its trading range with plenty of room left to the upside.

While not overbought, China Mobile (NYSE:CHL) is loosing its shine after smaller rivals reported financials. Investors seems to be most impressed with result from China Unicom (NYSE:CHU), sparking a rotation within the sector. While China Unicom (NYSE:CHU) is rolling in the dough China Mobile (NYSE:CHL) is suffering.