Almost all the analyst reports recommend a SELL rating on SIA but the stock price defied the odd and move upwards for the past few months. The stock price is irrational and I don’t see why SIA stock can keep moving up amid the recession. In addition, the general economy is bad. The passenger traffic drop YOY, cargo traffic and cargo capacity is also falling YOY, the SIA staffs was asked to take unpaid leave, the company is losing money for the first time, but the stock price is UP and UP!
I still believe that SIA will come down at certain point because there is no fundamental to support the continuous uptrend for this blue chip stock. Looking at the bigger picture, SIA has been on a nice up trend since April, however there is a price volume divergence when the stock price goes higher and higher. The key question is when SIA will start the correction?
Keppel Corp is testing the $8.45 resistance for the 3rd time! If it cannot break the resistance, a triple tops may be formed. There is also a divergence in price vs volume. If tomorrow market open gap down and end with a bearish candle, an Evening Star is formed and the trend will be reversed. The price may move down to around $7.00 level.