Photographer: ChinaFotoPress/VCG via Getty Images

China’s NetEase Soars Into Overbought Zone After Rally: Chart

On track for its best monthly gain since 2011 on better-than-estimated earnings, NetEase Inc. may have risen too much too fast, even after Morningstar Investment Service cut it to hold from buy. The Chinese online-game operator’s 14-day relative strength index is headed for its ninth straight session in 70-plus overbought territory, hitting 79 on Tuesday, a level it reaches less than 1 percent of the time. If the U.S.-traded shares remain in that zone through the close, it will be their longest such streak since 2005. The stock tanked after its last two eight-day overbought runs.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE