StarHub Ltd – Daily timeframe
*Entry Price: 1.81 Stop loss: 1.57 Take profit: 2.09
*Starhub Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 1.61 Resistance 1: 1.91
Support 2: 1.58 Resistance 2: 2.09
Since hitting a high of 2.99 in late January, price has been stuck in a severe downtrend. Price continued to break multiple 52-week lows thereafter, and the bearish momentum was at a peak in late June. Price hit a low of 1.58 on 22/06/18 representing –47% drop from the 2.99 January high.
However, since then, there seemed to be some stabilisation in price as the 1.58 low succeeded in holding up for the past three months. In fact, price was consolidating between the 1.75 range high and 1.61 range low for the past three months.
A bullish breakout finally happened on 25/09/18 with price breaking significantly above the 1.75 range high signals a shift in sentiment to the bullish side.
Hence, with the current bullish breakout, expect price to bottom out and reverse higher to test the 1.91 resistance area followed by 2.09. The June low of 1.58 could be the bottom if the bullish follow-through plays out.