Trade of the Day
SATS Ltd (SGX: S58)
(Current Price: S$2.54) – TECHNICAL BUY
Buy price: S$2.54 Stop loss: S$2.47 (-2.76%)
Take profit 1: S$2.70 (+6.30%) Take profit 2: S$2.80 (+10.24%)
(1) & (2): SATS Ltd broke out of a downtrend channel, and the price was able to find support at the S$2.53 level, which was a resistance following a breakdown in April 2024. This provides a bullish signal.
(3): The Moving Average Convergence Divergence (MACD) & Relative Strength Index (RSI) technical indicators support the bullish view with bullish divergence signals while the price trended lower prior to the breakout, before showing increasing momentum thereafter.
We expect the price to continue trending higher towards Take profit level 1 at S$2.70 to retest a previous swing high resistance level in March 2024.
The price could then trade higher towards Take profit level 2 at S$2.80 to retest a higher swing high resistance level in February 2024.
Expected timeline of the trade is 2-12 weeks from the date of report issuance.
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).
