TECHNICAL BUY

Starhub Ltd – Daily timeframe  

*Entry Price: 2.53          Stop loss : 2.39       Take profit : 2.72

*Starhub Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 2.46                     Resistance 1: 2.63

Support 2: 2.32                     Resistance 2: 2.72

Price has been moving in a steep downtrend since January 2018 after it formed a double top near the 2.98 resistance area. The selloff accelerated recently as it broke below the 2.54 key support area.

However, there might be some near-term recovery soon as price has been consolidating around the 2.50 psychological round number for the past four trading days.

After breaking below the 2.54 key support area on 22/02/18, there seemed to be  strong buying happening around the 2.47 low as price was aggressively held up after testing the 2.47 area. In total, there were three bullish price action lately around the 2.47 low with price forming bullish reversal hammers on 23/02/18, 26/02/18 and most recently 28/02/18.

Hence with the current bullish price action, expect price to make a near-term rebound soon as the selling is overdone based on the Relative Strength Index (RSI). The RSI has entered into oversold condition since 15/02/18, and it hit an extreme low of 26 on 22/02/18 suggesting for a mean reversion soon.