Written by Christoper Lynn    
Monday, 12 September 2011 05:36 
New York, September 12th (TradersHuddle.com) - Shares of Yingli Green Energy Holding Co. Ltd. (NYSE:YGE) closed the trading session at $4.53 well below calculated support at $5.20 placing the stock in oversold territory, as investors and money managers have been moving out of the stock

Yingli Green Energy Holding Co. Ltd. (NYSE:YGE) designs, manufactures and sells Photovoltaic (PV) modules in China and internationally. The Company also designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis.

Yingli Green's stock was trading in a well defined range with support at $5.20 and resistance at $6.57, prior to its decline. It was evident how traders went out of the stock, when it broke calculated support sparking the current down draft.

From a technical perspective the Yingli Green Energy stock is in severe pain, as the harsh sell-off could place a heavy burden of buyers wanting their money back, generating a price dynamic where buyers will become sellers when a bounce materializes. It can be expected that previous support becomes resistance, as a new range gets defined, therefore the maximum move for the stock should be calculated to return to previous support at $5.20. Traders wanting to establish a long position in Yingli Green Energyto play an oversold bounce should consider waiting for evidence of buying at a specified area to use it as a pivot placing stop losses.