Trade of the Day – Singapore Telecommunications Ltd (SGX: Z74) September 28, 2023 276

Trade of the Day

Singapore Telecommunications Ltd (SGX: Z74)

(Current Price: S$2.40) – TECHNICAL BUY

Buy price: S$2.40     Stop loss: S$2.35 (-2.08%)     Take profit: S$2.55 (+6.25%)    

 

 

The price retested the S$2.40 recent resistance turned support level following a breakout, after a double bottom was formed at the S$2.32 level. The Moving Average Convergence Divergence, or MACD, and Relative Strength Index, or RSI technical indicators also displayed bullish divergence recently during the double bottom formation, which could signal for increasing bullish momentum ahead.

 

The price could retest the S$2.55 previous support breakdown level turned resistance, confluent with the downtrend resistance line.

Expected timeline of the trade is 4-12 weeks from the date of report issuance.

 

Our research team has a fundamental recommendation of “BUY” with a target price of S$2.80.

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

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).

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