Random chart musing (Singtel): Closing the gap

$SingTel(Z74.SI)

#TA



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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33 likes
86 comments
ochartist

Congrats Bunny . . . your post has reached 23.4k readership liao . . .
Kopisoh said SingTel is one of the young bull that has started the new 10--year cycle . . .
There are not that many yet . . .

Spinning_Top

Reply to @ochartist : lol...seriously I wasn't really paying attention to the readership number...
thanks for chiming in... :)

Spinning_Top

https://www.theedgesingapore.com/news/brok...

Maybank Kim Eng revised target price to $3.72 wor...can trust???
This analyst smart...wait for the all the dust settled then give opinion and TP so no need to scramble to flip prata within few days...

Spinning_Top

Today, breakaway gap spotted with high volume ( more than 50 million shares) transacted. It covered the gap at 3.43 convincingly and closed at 3.46 resulting in a long green candle.
At first, I thought it will be an exhaustion gap and was worried it may closed as a shooting star but it didn't.
It looks likely to trend higher in the direction of breakout and it seem to want to go back into the accelerated trendline zone.

Do note that 4 white soldiers had formed and looked like a flag pole pattern might be forming. It may issue a breather before it can propel further up.
Next up, it may test the previous resistance level at 3.55. Be nimble as always.

ljunyuan

Reply to @Spinning_Top : all the best to you on this one bro! huat ah! :)

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Leyzzz

Closed at 3.46.. not bad! hopefully this week can hit my 2nd target price 3.50.

Anthony1961

Uptrend TP 3.60 on sight.

Anthony1961

Power to Singtel
Huat ah!
CHIONG AHhhhhhh

desmondchua0

Woooweeee... No longer SINKtel?

luxcan

Reply to @WK888 : My initial TP was $3.8 when I board the boat 2 weeks ago haha.

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aero73

My KB
Big Huat for you
Congrats for those vested!
Singtel Huat ahhh

leewe

Sian, when is my $2.86 coming?

desmondchua0

Reply to @leewe : Good things come to those that wait, hehee

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