SCHMID surges after Nvidia, AMD, Intel consider using glass substrates in chips
Shares of SCHMID surged following news that NVIDIA, AMD, and Intel are considering adopting glass substrates for chip manufacturing.
An entry can be considered based on strong positive news, such as NVIDIA's review of glass substrate adoption. Although the current stock price has broken above the resistance level ($3.86) to the upside, it is showing signs of short-term overheating, necessitating a conservative approach to confirm price defense near the support level ($2.99).
Although the stock price has broken upward through the resistance level ($3.86), it shows signs of short-term overheating. Therefore, I will consider entering if price defense is confirmed near the support level ($2.99). However, if these conditions break and the price falls below the support level of $2.99, I will cut losses, and once the price reaches the target price of $3.86 based on the resistance level, I will take profits.
RSI(14) is 64.6, approaching the overbought zone, the moving averages are in a non-bullish alignment, trading volume is at 0.83 times the 20-day average, and the volatility over the past 7 days recorded +13.1%.
Based on the strong positive catalyst of Nvidia, AMD, and Intel reviewing the adoption of glass substrates, we established a conservative entry scenario, noting the upward breakthrough of the resistance line ($3.86) and the defensive strength of the support line ($2.99). At the time, with an RSI(14) of 64.6, non-aligned moving averages, and trading volume at 0.83 times the 20-day average, we were cautious about signs of short-term overheating. However, the actual result recorded an 11.2% return, significantly exceeding the predicted 3.5% return, resulting in an OVERHIT verdict. Retrospectively, we confirmed that the positive catalyst's impact overwhelmed technical overheating concerns, leading to further upward momentum.
Even if technical indicators are in a somewhat overheated zone, we will reflect in our next trades that stronger-than-expected trend persistence can occur when accompanied by powerful structural tailwinds in major themes (such as an upward trend and S-Class conversion rates). However, rather than unconditionally chasing the market in the overheated phase, we will strictly adhere to the established support level ($2.99) and resistance level ($3.86) criteria, while executing strategic adjustments to flexibly raise the take-profit target if strong momentum is captured.