Singtel moving down soon?

Good evening all,

Seems like the equity market is just getting more and more surprising by the day. When global indices started breaking through support levels on my chart platform, I started telling myself it was about time I accept the bear market that we are in. And just when I am thinking of joining the bear camp for good, equity markets shoot up the next trading day, and then I find myself back to square one – still holding onto the bull flag but remaining very cautious.

Anyway, here is a chart of a local defensive play – Singtel. As conventional teaching will show, Singtel – a defensive stock amid the calamity occuring on other charts – managed to escape the selling pressure that other stocks experienced. In fact, Singtel managed to hit post-2008 crash highs of $3.20. Singtel has been slowly trading in a tight parallel channel with a slight upward biasness. The recent surge in Singtel’s stock price brought it near the upper band of the channel. As a technical analyst, I see this as a sell signal. A negative divergence between price and the RSI indicator indicates to me that Singtel should see a reversal soon. If Singtel manages to break through recent highs, that would be a major event on the chart as it shows investors are willing to price Singtel’s stock at a higher region – coming out of the high two-dollar, low three-dollar territory. For now, I will look for Singtel to go flat or come down and probably test the 200-day MA.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.


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