Eugene Technology Falls 63% from July High, Rebounds 60%… SIMMTECH Targets Second-Half Operating Profit Double First Half

It fell 63% in a single month, from a high of 231,500 won on July 1 to a low of 85,000 won on July 30. After hitting that low, however, it rebounded about 60%, and it is now trading around 135,500 won.

Eugene Technology is showing a positive trend under the Ichimoku Kinko Hyo chart. The current price is above both the conversion line at 123,950 won and the base line at 131,850 won. Key support levels are the base line at 131,850 won and the cloud bottom at 127,900 won below it.

SIMMTECH posted second-quarter revenue of 514.5 billion won, up 51% year on year. Operating profit came in at 62.9 billion won, a gain of more than 1,000%. Second-half guidance is also very positive, targeting revenue above 1.07 trillion won and operating profit of 163.1 billion won. That is more than double the first-half operating profit of 76.6 billion won.

SIMMTECH is showing three bullish signals under the Ichimoku Kinko Hyo chart. First, the conversion line at 112,800 won has moved above the base line at 95,400 won. Second, the current price of 114,200 won has broken above the cloud top at 112,750 won. Third, the forward cloud is thinning, which weakens the resistance overhead. Together, these three technical signals point to a positive trend reversal at SIMMTECH.

At the recent high, it printed an upper wick on heavy volume. This is a classic textbook top signal, pointing to a possible near-term peak.

It recorded an operating loss of 9.8 billion won and is still in the red. The loss has narrowed, but it has not turned into a profit. The current share price has run well ahead of actual earnings, with expectations outpacing results.