- OneSmart International Education shares gain nearly 9% in premarket.
- ONE reported stronger-than-expected revenue for the third quarter.
- Company announced that more than 90% of its learning centres reopened as of August 4th.
US-listed shares of China’s after-school education company, OneSmart International Education Group (ONE), gained nearly 40% since the start of the week. On Tuesday, NYSE: ONE climbed all the way up to $5.99 and retreated modestly to close 30.6% higher on a daily basis at $5.42. On Wednesday’s premarket trading, ONE is up nearly 9% at $5.90.
With this recent upsurge, ONE, which started the year at $6.66, erased the majority of the losses it suffered in 2020.
ONE stock news
On Tuesday, the company announced that revenue in the third quarter was 744.9 million yuan ($107.6 million). This reading beat IBES estimates of 703.1 million yuan by a wide margin and provided a boost to ONE. Additionally, the company said more than 90% of its learning centres reopened as of August 4th, as reported by Reuters.
Currently, ONE is trading at its highest level since early March and $6 aligns as the next resistance. Above that level, $6.35 (February 2 high) and $6.66 (2020 opening level) could be seen as the next targets.
On the other hand, $5 (psychological level) could be seen as the initial support ahead of $4.20 (100-day SMA) and $3.90 (20-day SMA). Meanwhile, the Relative Strength Index (RSI) on the daily chart rose above 70 for the first time since May 2018, suggesting that ONE could stage a technical correction before extending its rally.