Trade of the Day
Singapore Airlines (SGX: C6L)
(Current Price: S$6.22) – TECHNICAL SELL
Sell price: S$6.22 Stop loss: S$6.40 (-2.89%)
Take profit 1: S$6.00 (+3.54%) Take profit 2: S$5.78 (+7.07%)
(1) & (2): Singapore Airlines broke down a bearish flag consolidation following a series of lower highs formed, which provides a bearish signal.
(3): The Moving Average Convergence Divergence (MACD) & Relative Strength Index (RSI) technical indicators support the bearish view with decreasing momentum and a fresh bearish crossover on the MACD.
We expect the price to extend its downtrend towards Take profit level 1 at S$6.00 to retest a previous horizontal support level in November 2023.
The price could also trade lower towards Take profit level 2 at S$5.78 to retest a swing low support level in October 2023.
The expected timeline of the trade is 1-8 weeks from the date of report issuance.
Our research team has a fundamental recommendation of “REDUCE” with a target price of S$5.91
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).
