September 6, 2011 (Chinavestor) An increasing number of China small cap stocks are trading at extremes according to the overbought monitor. China Natural Resources (NASDAQ:CHNR) is trading closest to theoretical highs followed closely by Agria Corp. (NYSE:GRO) and Sutor Technology (NASDAQ:SUTR). Not overbought small caps on the move include Spreadtrum Communications (NASDAQ:SPRD), China Grentech (NASDAQ:GRRF), China Infrastructure Development (NASDAQ:CIIC) and Telestone Technologies (NASDAQ:TSTC). The only large cap stock with unusual move is China Unicom (NYSE:CHU) after Labor Day Holiday. The oversold monitor is lacking action with Global Technologies (NASDAQ:GSOL) trading closest to theoretical lows.

China Natural Resources (NASDAQ:CHNR) has more downside risk than  upside potential at this point. Agria Corp. (NYSE:GRO) and Sutor Technology (NASDAQ:SUTR) are looking very similiar to CHNR from a technical point of view. This group of stocks are most likely to take a breather if technical indicators were right.

The next group of stocks of interest include Spreadtrum Communications (NASDAQ:SPRD), China Grentech (NASDAQ:GRRF), China Infrastructure Development (NASDAQ:CIIC) and Telestone Technologies (NASDAQ:TSTC).These stocks have advanced unusually last week but are not trading at extremes yet. This indicates more upside is possible albeit the rate of advance is likely to slow.

China Unicom (NYSE:CHU) has room left to the upside despite latest surge. The stock went from $17.2 to over $21 in two weeks but momentum may carry the stock higher.