SIA Engg cruising at all-time high – for now

Evening all,

I have SIA Engg, S59.SI for today. Ever since besting all-time highs two years ago, SIA Engg entered into a distribution phase and traded in a fairly wide range between $4.60 and the $5.00 region. A clear support zone formed just above the previous major post-crash peak. In my last post on SIA Engg, https://technicalanalysistalk.wordpress.com/2013/05/02/singapore-market-moving-up-sia-engg-impresses/, I trusted the strong uptrend at that time. But as time unfolded, SIA Engg sold off quite severely – 10% off the peak. Fortunately, I was not in a position.

SIAE

Now, I shall zoom in on the rangebound market – since this is the current state of the market for S59.SI’s shares. I highlight a number of events inside this flat phase. First, you can see the failed attempt at holding the all-time high surge; then, there is a large symmetrical triangle – although not the best-looking, a clear enough zig-zag price action coupled with ideal volume behaviour confirms the pattern; finally, a bear flag portraying the breakout towards the downside of the symmetrical triangle. What seems like a boring flat market is putting SIA Engg on the radar.

One thing to note is that the flag pole of the bear flag is not exactly ideal: there is a gap in it. Also, the flag of the flag pole seems more like the market filling up the gap casually. As a longer-term player nowadays, I will still take the flat market as it is. But in a few months’ time, if SIA Engg is clearly broken down from this range, I just might look at it seriously for a bearish set-up.

siae2

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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One Trackback

  1. By Blue-chips in trouble « TechnicalAnalysisTalk on November 30, 2014 at 8:54 PM

    […] is SIA Engineering – S59.SI. In my last post on this counter – https://technicalanalysistalk.wordpress.com/2014/04/10/sia-engg-cruising-at-all-time-high/ – […]

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