Yes...after coming out with the latest result plus the guidance for the qtr, it was down graded by HSBC to under-weight. For the guidance of likelihood of a profit for the second half of this year which is a good thing, the price is most likely to drop to the 38.2% Fibonacci retracement level before bouncing up again. Thus making this a S3 counter.
For the immediate moment...the share price may fall below the above level to around 62-63 HKD cts after which it will most likely to recover to the recent high of around HKD1.00 level since it's God-father is doing very well for the latest qtr too.
In fact...it's guidance is that the chip business will see a 20-25% up-side.
Just need to watch out on this SMIC trading volume for sign whether the "play" is back or not. With the weak close for the US market plus the blood-letting in Euro markets....come Monday, mostly likely to see this stock to revisit the 38.2% retracement level of 67cts at the start of trading and then going down further. Esp after it's Friday performance.
for the coming week...I will short this counter for a short term trade.
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