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