Gains in the previous four sessions helped both onshore Chinese indexes rebound decisively from their respective 50-day moving averages in improved volume, positive technical signs
that suggest further gains could be in store.
Even S&P's Intel analyst, Christin Armacost, has only a "neutral" rating on the company, with a "hold" on the company and a "bearish" outlook on technical signs
related to the semiconductor sector since August.
Over the last few weeks, however, technical signs
have become more ominous, suggesting the stock may be running out of steam.
Tokyo stocks were also prone to face selling amid technical signs
showing that the market is at an overbought level, brokers said.
On the other hand, with US Treasury yields showing technical signs
of having formed at least a medium-term bottom in September and early October, and the prospect of further rises if Europe does succeed in muddling through its debt crisis response, the opportunity to lock in dollar funding at current yields may appeal to the company.
Summary: TOKYO, Jun 03, SPA -- Japan&'s Nikkei average surged over 3 percent to a two-week high on Thursday and had its biggest one day percentage gain in six months, with foreign investors tentatively re-entering the market and technical signs
turning brighter, according to Reuters.
The losses came at no surprise as the market has (in the recent past) shown technical signs
of being exhausted and this was the main technical reason of its inability to conquer and maintain a close above 6100, which is the highest level reached (recently) on a closing basis," Faisal Alsayrafi, managing director and CEO of the Jeddah-based Financial Transaction House (FTH), said.
We use our Expectations Analysts(R) methodology to identify stocks where the prevailing sentiment on the Street is running counter to fundamental and technical signs
Brokers said Tokyo stocks were prone to selling due to some technical signs
of the market's overheating following their recent advances, after the Nikkei index rose on five of the previous six trading days.
Two long-term technical signs
suggest that ASH could enjoy some additional strength in its future.
But the longer-term technical signs
are not looking ominous as yet.
There are some short-term technical signs
that the market has been overheated.