We had a gap down last Friday and it is now hovering slightly below the bullish trend line. Next Monday night, we would see if the price action continues to head southward or recover and fill up the gap.
The Nasdaq (US tech shares) are getting higher by the weeks and it is time for a healthy correction. Conversely, the China Tech stocks are being beaten down with 30-60% discount which can offers a good geographic rotation and profit taking for some traders/investors.
This is a panic sell due to earning expectations. Nothing change in company fundamentals, so it will eventually go back up once the fear goes away.
Check ORCL, it did a gap down of 6-7% due to earnings recently and it fully recovers.
dchua1969
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@starsora04, thanks for your comments! wish it could drop more so i can pick up more ,haha
UnknownUnicorn7245819
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@dchua1969, Another example, back on Apr 30, 2020, AMZN dropped 8% and recovered fully 6 days after.
doesnt look like it will go up in the short term but nonetheless i couldnt resist nibbling!
dchua1969
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@krenova, thanks for your comments ! yes, it is tough to time the market bottom so if you believe in the fundamentals of the company, the temporary drop in pricing is in fact an opportunity !
Check ORCL, it did a gap down of 6-7% due to earnings recently and it fully recovers.