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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