(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

SoftBank Stock Reaches Key Juncture – Can It Extend Gains?

Article background

Aayush Jindal

Key Highlights

  • SoftBank stock price is facing a major hurdle near the ¥6,550 zone.
  • It broke a major bearish trend line with resistance near ¥6,160 on the daily chart.
  • SoftBank registered sales of ¥1.67 trillion in the fiscal second quarter of 2023, up 3.4% (YoY).
  • It posted its fourth consecutive quarterly loss (lost ¥931 billion).

SoftBank Price Analysis

After a disappointing earnings report in Nov 2023, SoftBank (TYO: 9984) saw a strong drop to ¥5,640. Later, it started a steady increase above ¥6,000 and now testing a major hurdle.

In November 2023, SoftBank published its fiscal second quarter report. It posted sales of ¥1.67 trillion, lost ¥931 billion in the quarter, and had sales of ¥3.3 trillion in the first half of its fiscal year through September 2023 (up 1.4% from a year earlier).

Looking at the daily chart of SoftBank stock, there was a decent increase above the ¥6,000 level. It broke a major bearish trend line with resistance near ¥6,160, opening the doors for more upsides.

However, the bulls seem to be facing strong resistance near the ¥6,550 zone. It already faced a rejection, with a spike to ¥6,637. The first major support on the downside is near the ¥6,365 level. The next major support is near the ¥6,250 level.

A downside break below the ¥6,250 level could open the doors to more losses. In the stated case, SoftBank’s stock price could drop toward the ¥6,020 support.

On the upside, the first major hurdle is at ¥6,550. The next key resistance is near the ¥6,640 level. A clear move above the ¥6,640 level might send the price toward the ¥6,920 level or even ¥7,000.

Economic Releases

  • UK Claimant Count Change for Dec 2023 – Forecast -2.0K, versus 16K previous.
  • UK ILO Unemployment Rate for Nov 2023 (3M) – Forecast 4.2%, versus 4.2% previous.
Great