SMIC - will it reclaim 200-day moving average?
🆕Macquarie has listed a new call warrant $SMIC MB eCW270105(QKMW.SI)$ (https://warrants.com.sg/tools/livematrix/QKMW) tracking $SMIC(00981)$
- China's largest and most advanced semiconductor foundry
✳The warrant costs SGD 0.033 while SMIC shares listed on the HKEX trades at HKD 70.00
SMIC shares had momentarily reclaimed its 200-day moving average of HKD 70.26 yesterday but eventually closed at HKD 69.70
👀According to Bloomberg AskB, the 200-day moving average is a critical support level
AskB notes that the MACD line (-0.35) for SMIC has crossed above the signal line (-0.67), a constructive momentum signal, though both remain in negative territory
AskB points out the 50-day moving average of HKD 73.22 as the next price level to watch should SMIC move past HKD 70.26, for a more durable recovery of the share
SMIC has been an underperformer across all near to medium term horizons, with its 3-month 16.7% loss since its 30 June peak of HKD 89.40 compared to the Hang Seng Index's 2% gain particularly striking
📢SMIC had reported after market on 13 Aug a 262% increase in its Q2 net income to USD479.2 million, nearly double the consensus expectation for a USD 256.7 million increase
Its gross margin of 25.3% also beat the street expectation of a 21.4% margin
The better than expected results led to a 12.3% jump in its share price over the next three days
Since, the stock was sold off sharply on the back of a broad tech/semiconductor sell-off, leading SMIC to give back all post earnings gains to close at HKD 66.75 on Monday - which is just four days after its post-earnings rally and below the 13 Aug earnings-day close
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- CarterSilas·08-27 15:13MACD cross in negative territory is only a weak momentum shift. 70.26 needs volume, otherwise 73.22 probably stays out of reachLikeReport