Singapore O&G Ltd – Daily timeframe (Update from 9 November 2017)
*Stop loss: 0.420
Current Sentiment: Bearish
Support 1: 0.400 Resistance 1: 0.435
Support 2: 0.380 Resistance 2: 0.465
Buyers failed to put in any bullish follow through after the last update leading to a breakdown in price where the downtrend retook control. The newly formed resistance at 0.535 appeared to be the near term top that capped the upside.
After price broke below the 20 and 60 day moving average since 14/11/17, the bearish momentum accelerated. Further sign of weakness appeared lately after the inverted Head and Shoulders low at 0.435 failed to hold. After one month of defending at the 0.435 support area since 11/12/17, sellers finally broke below the 0.435 key support area with increasing volume.
As a result, our trade in Singapore O&G Ltd since 14/09/17 has been stopped out at 0.420 resulting in a -14.3% loss. The equal-weighted loss from this trade dragged the performance of the “Phillip 20 Portfolio” down by -0.71%.
The bearish break and close below the 0.435 support area on 10/01/18 with increasing volume is a bearish sign for further downside. The next target on the downside should be the 0.400 support area followed by 0.380.
Note: Our current fundamental view on Singapore O&G is an Accumulate rating with a fair value of $0.620.