AAC Technologies (2018-hk): Heading Towards January High
George Lam July 7, 2020 3:42 AM
AAC Technologies (2018-hk), has rebounded more than 60% from March low, exceeding our previous forecast made in June.
AAC Technologies (2018-hk), a manufacturer of miniaturized acoustic components, has rebounded more than 60% from March low, exceeding our previous forecast made in June.
In fact, the Nasdaq Composite Index has reached another record high on Monday, with tech stocks surging higher. AAC Technologies is a major iPhone components supplier, it should benefit from a strong performance in Apple's share price and optimism on economic reopening.
HSBC pointed out that the company's 2Q lens module shipments are expected to rebound to 154 million units from 68 million units in 1Q and sees 2Q net income growing 7% on year to 360 million yuan.
From a technical point of view, AAC Technologies has accelerated to the upside after breaking above a 3-month consolidation range as shown on the daily chart. Currently, it is challenging the 61.8% Fibonacci retracement resistance of the decline in 1Q. Bullish investors might consider $50.00 as the nearest support level, with prices trending to test the next resistances at $65.00 and $72.90. Alternatively, losing $50.00 would signal a loss of momentum and may trigger a pull-back to the next support at $44.80.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.