Amkor Technology Moves to the Downside in One Day

Amkor Technology (AMKR), a subcontractor of semiconductor packaging and test services, moved to the downside as it closed down $1.07 (18.83%) to $4.75 after announcing its second quarter earnings on July 28, 2005. AMKR stated that its third quarter earnings would be less than previous estimates so the stock sold off on very heavy volume of 14,292,685 shares, nearly six times its average daily volume.

Since May 13 AMKR went from $2.94 to a close of $6 on July 26. The stock price was facing major resistance at $6 so when the AMKR surprised investors with the negative forecast, investors decided to sell.

On July 28 the Price Direction Indicator (PDI) moved down as did the cumulative percent winners, cumulative returns and return per day.