Singtel Ltd – Weekly timeframe (Update from 9 December 16)
Current Sentiment: Bearish
Support 1: 3.65 Resistance 1: 3.86
Support 2: 3.59 Resistance 2: 3.95
Despite the recent recovery in price since the start of 2017, price is still stuck in the long term downtrend shown by the persistent rejection off the confluence of 50% Fibonacci retracement level and 3.99 resistance area.
Moreover, sellers seem to be reappearing once again after a period of consolidation around the 3.99 range high and 3.86 range low. There was strong bearish break below the 3.86 range low on the week ended 13/04/17 with increasing volume suggests a move back into the long term downtrend is being established. Additionally, the bearish break also succeeded in closing price below the 20, 60 and 200 week moving average significantly.
Expect price to head lower next to test the 3.65 support area followed by 3.59.
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