Singtel Ltd – Weekly timeframe (Update from 12 June 2018)
*Entry Price: 3.27 Stop loss: 2.98 Take profit: 3.56
*Singtel Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 3.10 Resistance 1: 3.38
Support 2: 3.00 Resistance 2: 3.56
The bullish hammer rejection bar from the last update failed to usher in a bottom. Instead, the downtrend continued with price hitting a new 6-year low of 3.02 on 03/07/18.
However, the psychological round number of 3.00 seemed to be holding price up firmly. After briefly testing the 3.02 low on 03/07/18, price made a sharp recovery. As a result, a Bullish Outside Bar was formed on the week ended 06/07/18 with increasing volume suggests a reversal higher next. Moreover, the selloff since May has also moved the Weekly Relative Strength Index (RSI) into an oversold condition in the week ended 29 June. The RSI hit a low of 28.
With the current bullish rejection off the 3.00 psychological round number, the RSI has recovered back above the 30 oversold condition suggests the start of a mean reversion higher. Looking from a zoom out perspective also shows a RSI bullish divergence forming with the recent bullish rejection shown by the diagonal lines.
Thus, with the bullish price action rejection off the 3.00 psychological round number and RSI bullish divergence, expect price to rebound higher next to test the 3.38 resistance area followed by 3.56.