Technical Pulse: Singtel Ltd June 12, 2018

Technical Buy

Singtel Ltd – Daily timeframe (Update from 31 May 2018)

*Entry Price: 3.26         Stop loss : 3.15       Take profit : 3.38

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

Current Sentiment: Bullish

Support 1: 3.19                     Resistance 1: 3.30

Support 2: 3.16                     Resistance 2: 3.38

Price fell as expected after the last update where the critical support area at 3.32 broke down. The bearish momentum accelerated once price broke below the 3.32 support area on 30/05/18 leading to price hitting a new 52-week low at 3.19 on 11/06/18.

However, some sign of strength showed up on 11/06/18 where the bulls managed to close price near the day’s high at 3.24 resulting in the formation of a hammer reversal candlestick pattern. Moreover, with the recent decline in price, the relative strength index (RSI) has also dipped into the oversold condition suggesting for a rebound soon. RSI measures momentum. A reading below 30 represents oversold condition while a reading above 70 represents overbought condition.

Interestingly, with the hammer rejection bar on 11/06/18, the RSI managed to climb back above the 30 oversold region signals the start of a mean reversion higher.

Expect price to reverse higher next for price to test the 3.30 resistance area followed by 3.38. The hammer low of 3.19 could be the near-term bottom if the bullish follow-through occurs.

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About the author

Profile photo of Jeremy Ng

Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd

Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.

He is also a regular columnist on The Business Times - every Monday ChartPoint column.

He graduated with a Bachelor of Science in Banking and Finance from University of London.

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