UTAC down trend.... buy in ard 0.82

i took this article from channelnewsasia forum. looks like this counter will be having more down trend. the next support that we will be looking at will be 0.845 to 0.805 followed by 0.765. If it really breaks 0.805... then do monitor it carefully as there will be a rebounce back soon and also buy in at 0.81 0.82 if it touches it. Will be a g00d buy



Ah ... got request for TA ... Fido will let go but take it for reference only ...

On the daily chart, the short term WMA 9/15/21 is not a pretty thing, that meant UGLY ...

These WMAs are all turning down and the close price of 0.88 is below them. Very negative.

I hope 0.88 is not broken, if not broken it would mean a Tweezer Bottom support.

MACD (8,17,9) is all below the zero line, very negative.

If I am not wrong this MACD could still be in the red for another week. As the saying goes, "what goes down must go up again eventually ... ", thus I am not so pessimist, for all downturns eventually recover.

If one is already vested, and indeed I advise myself also, buy time and wait for the upturn. If not sell off if there is still profit to take.

Stochastic (14,3,5) is well below value 20 which means that this is possibly a bottom from which upside is just waiting to happen.

Williams %R 14 is also at historical low of value -100, which also implies some upside to happen. Most times than not, at -100, upside is quite sure. If there is no more negative news on UTAc or the chip sector, the present trend could stop sliding further and consolidate.

Semiconductor expects “Shining June”
Business Times (Taiwan)
2007.05.07

Following the financial results reported in the first quarter, semiconductor industry outlook for the second quarter is almost overwhelmingly good. In particular, strong orders after June. Domestic foundries such as TSMC, UMC, ASE and SPIL are expecting strong orders in June this year, rather than the traditional low season.

According to the semiconductor market cycle over the past decade, the industry expects “Shining June” to be materialized, suggesting that the semiconductor industry is entering a strong recovery phase in a 4 to 5 years cycle. The strong recovery is expected to at least last until second quarter of next year.

According to the Semiconductor International Capacity Statistics (SICAS), in the past 10 years, “Shining June” happened twice. The first one was in June 1998, although the economy was still in the period of the previous recession phase, market conditions quickly entered into strong recovery in June, various semiconductor plant capacity utilization rates had therefore continued to go up, and reached its peak in July 2000 at 96%.

The second time occurred in June 2003, although this wave of prosperity lasted for only about four quarters of strong recovery and reached its four-year high in July 2004. However, if consider the market condition after year 2000, the growth rate of between 6 to 10%. The intensity of the recovery remained intact, industrial capacity utilization rate was average at 95%. At its peak almost no semiconductor production lines were idle.

Judging from the sales orders of the industry, the possibility of “Shining June” had increased substantially. UMC chairman pointed out that June will be the strongest month, almost all major customers placed orders in June, and the second half of the year seems not too bad ...


Full report:
http://news.chinatimes.com/2007Cti/2007Cti-News/2007Cti-News-Content/0,4521,120501+122007050700310,00.html