Amkor Technology Inc. is a globally operating electronics manufacturer that has specialized in the production of chip packages and automatic test equipment for semiconductor technology. The company, which is listed in the Nasdaq, is deemed a market leader when it comes to the packing of so-called dice in the chip package. In the following analysis, we will expand on the stock of the company from a chart-related point of view.
Review (daily chart)
After two unsuccessful attempts to surpass the old high at approx. $12.50, initially, a stronger sell-off until under the 200 SMA took place. After a further recovery, the next sell-off immediately took place with considerably higher volume, whereby even the lows from slightly further back were also significantly undercut. This was, at the same time, also the confirmation of the now-existing downward trend, which is currently in a correction. If the technical counter-movement continues to last, this would result in a downward potential in the short direction with up to 50%.
Outlook (hourly chart)
In the hourly chart, we can see the currently running correction, which has yet to develop in our preferred trading direction. For a short entry, we should wait for the formation of a signal, e.g. in the form of a P2, and place the stop loss above the last P3 (depicted in green). Alternatively, and with the advantage of a more favorable stop, one can also practice trading out of the correction or the formation of a reversal candle at a significant point.
The targets are located in the areas around $8.35 and lower (see green zone in the daily chart), which makes the stock even more attractive for short entries.
If the price clearly exceeds the last significant high at approx. $11.30, we should abandon the short scenario for the time being (daily chart depicted in red). Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.
Disclosure of possible conflicts of interest: at the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.
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