While the price of LAFE CORPORATION LIMITED has dropped by more than 5%, trading volume of the last trading day is higher than the average volume over the past 50 days. It is also observed that the MacD line is below the signal line indicating some short-term price weakness.
Company Information
Background
Lafe was incorporated in Bermuda on 8 April 1999 under the name of The Grande Electronics Holdings Limited. On 14 March 2000, the Company changed its name to Lafe Technology Limited.
The Group is primarily involved in the design and manufacture of computer magnetic heads for use in hard disk drives and tape drives for some of the world's leading disk drive and tape drive makers. It produces heads assembly units as well as tape drive sub-assembly modules for our customers. It has also expanded into the manufacturing of compact disc drives for the consumer and car audio markets. It carries out its manufacturing activities at Panyu, which is located in the Guangdong, China.
Trend: Consolidation with a potential bullish breakout bias
The benchmark STI remains sandwiched between the 20 and 50-day moving averages. Interestingly, a possible bullish crossover signal was spotted in the MACD trend indicator, which suggests a potential change in the trend. In addition, upside momentum is also building up as the Stochastic oscillator continues to inch upwards. In order to see a follow-through, the STI needs to break above the immediate resistance at 2952 to see a potential upside push towards 3043 next. On the other hand, a violation below the immediate support at 2910 may negate the potential bullish tone to see a slide towards the rising window gap support of 2886-2875.
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