Trade of the Day – Singtel (SGX: Z74) March 15, 2023 89

Trade of the Day

Singtel (SGX: Z74)

(Current Price: S$2.38) – TECHNICAL BUY

Buy price: S$2.35     Stop loss: S$2.29     Take profit 1: S$2.55    

Take profit 2: S$2.60

 

 

The price has pulled back to the downtrend channel support at S$2.32 which is also confluent with a previous swing low support formed at this level in October 2022. The Relative Strength Index (RSI) indicator is also displaying bullish divergence as higher lows were formed while price made a lower low into the support recently, which provides a bullish signal.

We could see a retest of the first resistance level at S$2.55, which is confluent with the swing highs formed in February this year and a 50% Fibonacci retracement level. It could subsequently retest the next resistance level at S$2.60, which is confluent with a retest of the previous uptrend support line that was broken and a 61.8% Fibonacci retracement level. The Fibonacci retracement levels are calculated using the swing high at S$2.78 and swing low at S$2.31.

Expected timeline of the trade is 4-8 weeks from the date of report issuance.

Our research team has a fundamental recommendation of ‘ACCUMULATE’ for this counter and a target price of S$2.84.

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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