Kingsoft Potentially set for a New Rally
Kingsoft (3888-hk), a software company, announced on Tuesday that it swung to a 1H net profit from a net loss in the prior year...
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Kingsoft (3888-hk), a software company, announced on Tuesday that it swung to a 1H net profit of 9.15 billion yuan from a net loss of 1.42 billion yuan in the prior-year period and operating profit jumped to 549 million yuan from 165 million yuan. Also, revenue was up 48.6% on year to 1.42 billion yuan.
JPMorgan pointed out that the company's spin-offs of KOS Holdings and Kingsoft Cloud have successfully created more shareholder value and rated the company at "Overweight".
From a technical point of view, Kingsoft shows early signs of an upside breakout on a daily chart. It has broken above a symmetrical triangle pattern after a recent rally, potentially suggesting a start of a new rally. The level at $37.25 might be considered as the nearest support, with prices trending to test the 1st and 2nd resistance at $47.60 and $51.20. Alternatively, a break below $37.25 may trigger a pull-back to test the next support at $34.45.
Source: TradingView, Gain Capital
Kingsoft (3888-hk), a software company, announced on Tuesday that it swung to a 1H net profit of 9.15 billion yuan from a net loss of 1.42 billion yuan in the prior-year period and operating profit jumped to 549 million yuan from 165 million yuan. Also, revenue was up 48.6% on year to 1.42 billion yuan.
JPMorgan pointed out that the company's spin-offs of KOS Holdings and Kingsoft Cloud have successfully created more shareholder value and rated the company at "Overweight".
From a technical point of view, Kingsoft shows early signs of an upside breakout on a daily chart. It has broken above a symmetrical triangle pattern after a recent rally, potentially suggesting a start of a new rally. The level at $37.25 might be considered as the nearest support, with prices trending to test the 1st and 2nd resistance at $47.60 and $51.20. Alternatively, a break below $37.25 may trigger a pull-back to test the next support at $34.45.
Source: TradingView, Gain Capital
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