Sony Group's 15min chart triggers RSI Overbought, KDJ Death Cross signal.

Sony Group's 15-minute chart has triggered a reading on the Relative Strength Index (RSI) that indicates an overbought condition, and a Death Cross on the KDJ indicator has also been observed at 10:30 on April 29, 2025. This suggests that the stock price has risen too quickly and is no longer supported by fundamental factors, resulting in a shift in momentum towards the downside, potentially leading to further decreases in the stock price.

Title: Sony Group's Stock Faces Potential Downturn Amid Technical Indicators and Strategic Move

On April 29, 2025, Sony Group's stock experienced a significant shift in momentum, as technical indicators suggested a potential downturn. The Relative Strength Index (RSI) triggered an overbought condition, indicating that the stock price had risen too quickly and was no longer supported by fundamental factors. Additionally, a Death Cross on the KDJ indicator was observed at 10:30, further signaling a shift towards the downside [1].

This technical analysis comes at a time when Sony Group is considering a strategic move to spin off its semiconductor division, Sony Semiconductor Solutions Corp. The company is reportedly planning to distribute the majority of its holding in Sony Semiconductor Solutions to its shareholders, potentially leading to a separate stock listing before the end of 2025 [2].

Sony Semiconductor Solutions is the global market leader in image sensors and provides a range of mixed-signal chips, microdisplays, single-board computers, and MEMS foundry services. However, the company's image sensor business has faced challenges in recent years due to decreasing margins in the smartphone market [1].

Analysts predict a potential 19.40% upside in Sony's stock price over the next year, with a consensus among six brokerage firms ranking the stock as a "Buy" [2]. Despite this positive outlook, the current market volatility and the uncertainty surrounding the spin-off plan add a layer of risk to the proceedings.

Sony Group's financial year ended on March 31, with the company reporting a net income of 944 billion yen (about US$6.61 billion) on revenue of 10.3 trillion yen (about US$72.4 billion) in the first nine months of the 2024 financial year [1].

In summary, Sony Group's stock faces potential downturns due to technical indicators and the uncertainty surrounding the spin-off of its semiconductor division. Investors should closely monitor the developments and consider the implications of the strategic move on the company's future performance.

References:
[1] https://www.eenewseurope.com/en/sony-mulls-sale-of-chip-business-says-report/
[2] https://www.gurufocus.com/news/2808696/sony-sony-plans-semiconductor-unit-spinoff