Shares of Taiwanese foundry Powerchip opened higher but slid thereafter, plunging more than 5% in early trading — bad news for short-term investors.

• Powerchip turned negative shortly after the open, at one point falling below NT$67 and once again losing its quarterly moving average.
• The quarterly line, reclaimed only the previous day, was surrendered again, indicating insufficient willingness among buyers to chase prices higher.
• The three major institutional investors bought a combined net total of more than 40,000 lots the previous day, with foreign investors making substantial repurchases and ending five consecutive days of net selling — a contrast to today's decline.
• The company goes ex-dividend this Thursday, distributing a cash dividend of NT$0.23 per share totalling more than NT$1 billion, with institutional funds seen as betting on a dividend-gap-filling rally.

Outlook: With the ex-dividend date imminent, the near-term share price will depend on whether buying to fill the dividend gap takes over; otherwise, having lost the quarterly moving average, the stock may test its lows again.