AAC Technologies (2018-hk): Heading Towards January High

AAC Technologies (2018-hk), has rebounded more than 60% from March low, exceeding our previous forecast made in June.

Charts (3)

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.

Source: TradingView, Gain Capital

More from Tech Stocks

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.