On the weekly time frame of share prices, it can be seen that Sony stock price is hinting at a possible reversal. As you can see, there is an inverse head and shoulder formation with the pair moving close to the pattern’s neckline. This is a classic signal that the latest selloff is over and that an uptrend might take place soon.
The pending rally hinges on the outcome of the company’s earnings report. Tech and casino stocks have been rebounding in the recent trading sessions and it would be no surprise if Sony stock price also takes part of the rallies. Fujitsu is up by 1.6% in the latest session while Murata Manufacturing showed a 6.8% jump in stock prices after announcing its earnings report.
Sony Stock Price Forecast
At the moment, Sony stock price is still moving below the 50 and 200 simple moving averages on both the daily and weekly charts. This suggests that bulls have not yet jumped in and are probably waiting for top-tier data to spur price movement. Bear in mind that the US economy is also set to report its non-farm payrolls figure for April, which could impact overall market sentiment and Sony stock price action.
Take note also that Sony has warned that its profits might be slashed by at least 30%, its third profit warning in six months. This explains why Sony stock price has been moving in a downtrend so far and it could worsen if the actual figures show bleak data. Japanese tech company competitors, on the other hand, have escaped with good margins. “The contrast is stark with Sony anticipating a bigger loss while other companies are starting to enjoy the fruits of their restructuring measures,” said Tomoichiro Kubota, a senior market analyst at online brokerage Matsui Securities Co.
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