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  1. Home
  2. / Investing
  3. / Global Equity

World's Biggest Unicorn Investor Is Acting Soggy

Softbank's weakness is another sign of slowing economic conditions and restrictive monetary conditions.
By BRUCE KAMICH
Mar 21, 2023 | 01:15 PM EDT
Stocks quotes in this article: SFTBY

Investment fund Softbank (JP:9984) ( SFTBY) is the ultimate unicorn investor ("unicorn" is the term used in the venture capital industry to describe a startup company with a value of over $1 billion.) Not all of their investments have turned out positive, though, and its charts could be warning of further economic weakness ahead.
Let's check out two charts. 
 
In this daily bar chart of the Japan-listed shares, JP:9984, below, I can see a "round trip" from the low in early October to a high in November and back down to the prior October low around 4,800. Softbank trades below the declining 50-day moving average line and below the cresting 200-day moving average line.
 
The On-Balance-Volume (OBV) line shows weakness from early February. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line. 
 
 
In the weekly Japanese candlestick chart of Softbank, below, I see a disappointing picture. Prices are trading below the declining 40-week moving average line. The candles do not show me a bottom reversal pattern and do not show me lower shadows.
 
The weekly OBV line shows weakness from early November. The MACD oscillator has recently crossed below the zero line for an outright sell signal. 
 
 
Bottom-line strategy: The charts of Softbank look weak and probably headed lower. I consider weakness in Softbank's shares another sign of slowing economic conditions and restrictive monetary conditions. A break of the 4,500 area will probably precipitate further declines.
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TAGS: Growth Investing | Investing | Technical Analysis | Science | Software & Services | Technology | Japan | Global Equity

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