Other View on SingTel
SingTel ($2.49)-likely to recover to $2.60 area than test support at $2.38- $2.32
Having exceeded the 61.8% recovery mark ($2.64) of its August to October correction from $2.84 to $2.32, down 18.3%, its sharpest pullback since bottoming out at $1.20 three years ago, SingTel has moved down below the 38.2% mark of $2.52.
This should not be seen as a bearish signal that the stock is headed back to last year’s $2.32 low which has become a new multi year support topped up by the 2004 close of $2.38. The counter is now finding support around the 2004 high of $2.49 backed by the 1998 finish of $2.52.
Interestingly its high of $2.68 so far this year is a historic resistance being exactly the 1994 low and 2000 close ($2.69), although it has exceeded this mark by climbing to $2.84 in 2005, in between 2 major multi year hurdles - $2.78 (1994 high) and $2.95 (2001 high).
The broad long term recovery that began at end-2002 and January 2003 is far from over and the current 7.5% pullback from $2.68 to $2.48 offers good buying opportunities.
In fact the strong support emerging at this month’s $2.48 low (last year it ended at $2.61 thus under-performing the STI which is still above last year’s 2347 finish) suggests that SingTel is keeping close to the 38.2% mark ($2.52) of its recent recovery after the fall from $2.84 to $2.32.
It is unlikely to fall to the 2004 multi year support of $2.38 as there are many multi quarter support levels between $2.44 to $2.48. Any slight move below $2.48 is expected to attract strong buying interest.
SingTel should move up to $2.52 and the half way and 61.8% mark between $2.84 and $2.32 ie $2.58 and $2.64 by the time its q3 results are expected out on Feb 2.
When its full results are out in early May with bumper dividends likely to be handed out, SingTel should be above $2.70 and even test its 2005 high of $2.84.
Having exceeded the 61.8% recovery mark ($2.64) of its August to October correction from $2.84 to $2.32, down 18.3%, its sharpest pullback since bottoming out at $1.20 three years ago, SingTel has moved down below the 38.2% mark of $2.52.
This should not be seen as a bearish signal that the stock is headed back to last year’s $2.32 low which has become a new multi year support topped up by the 2004 close of $2.38. The counter is now finding support around the 2004 high of $2.49 backed by the 1998 finish of $2.52.
Interestingly its high of $2.68 so far this year is a historic resistance being exactly the 1994 low and 2000 close ($2.69), although it has exceeded this mark by climbing to $2.84 in 2005, in between 2 major multi year hurdles - $2.78 (1994 high) and $2.95 (2001 high).
The broad long term recovery that began at end-2002 and January 2003 is far from over and the current 7.5% pullback from $2.68 to $2.48 offers good buying opportunities.
In fact the strong support emerging at this month’s $2.48 low (last year it ended at $2.61 thus under-performing the STI which is still above last year’s 2347 finish) suggests that SingTel is keeping close to the 38.2% mark ($2.52) of its recent recovery after the fall from $2.84 to $2.32.
It is unlikely to fall to the 2004 multi year support of $2.38 as there are many multi quarter support levels between $2.44 to $2.48. Any slight move below $2.48 is expected to attract strong buying interest.
SingTel should move up to $2.52 and the half way and 61.8% mark between $2.84 and $2.32 ie $2.58 and $2.64 by the time its q3 results are expected out on Feb 2.
When its full results are out in early May with bumper dividends likely to be handed out, SingTel should be above $2.70 and even test its 2005 high of $2.84.
posted by SmartYInvestor at 2:04 AM
0 Comments:
Post a Comment
<< Home