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Random chart musing (Singtel): Closing the gap
As I have mentioned before, Singtel stock price had started correcting since Mar 2015 and had bottomed in Jan 2019.
It started its ascent in Mar 2019 and quickly peaked at $3.56 somewhere in Jul 2019 before faltering.
If you plot the mid term trendline (1. Healthy trendline), you can see that the candlesticks are still in uptrend zone. There had been another attempt to ascend in Oct 2019 but 1 day before the Q2 result (14 Nov 2019) was due to be released, it started falling.
It fell under the (2.Accelerated trendline) meaning the short term mini bull run may have ended. This could indicate some insiders knew some bad news might be coming.
After the news that Singtel incurred a loss of $668 million, the next day (15 Nov 2019), the stock price gapped down but still hugging the 200DMA.
On 18 Nov 2019, it opened higher than the previous day closing price and closed at previous day opening price and still hugging the 200 DMA giving the indication that a possible reversal could be in place and the short sellers should take note as it did not result in a falling knife formation. The bears did not want to give up and attempted to press down the price again on 19 Nov 2019 but this time it was not able to press down as low as on 15 Nov.
On 20 Nov 2019, a long candle with exceptional high volume ( 42 million shares transacted) closed the gap at $3.27.
The rise in price was due to the news that India telcos will raise the tariffs in the coming weeks.
Will there be continued upside? Well, one has to watch the following sessions to determine, one should see that it might attempt to break resistance at $3.37 and $3.56.
Will one be able to see $2.86 in the near term? Unlikely.
If the candlesticks don’t breach the long term healthy trendline and support level at $ 3.08, worst case scenario, it will be range bound between $3.12 to $3.50.
Let see which analysts/research house (compiled by Edge on 19 Nov) will be correct in the weeks to come.
1. CGS-CIMB Research (Foong Choong Chen), TP = 3.60
2. OCBC, TP = $3.53
3. Philp Capital (Alvin Chia), TP =3.31
4. DBS (Sachin Mittal), TP =3.12
Vested, so my views might be biased. DYODD. Thank you for reading.
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