SATS: Breakdown from Multiple Tops

SATS has broken from the neckline support & 200D MA support today after forming a multiple tops with increase in selling trading volume. This is a bearish chart pattern and this breakdown may bring SATS to $2.57.

Important things to watch:

  • Whether SATS can rebound from this 200D MA support and stay above $2.80.
  • Whether this $2.80 turned support to resistance.

In summary, the current SATS charts look bearish, and downside risk is much higher than upside potential. $2.97 is a very tough resistance to break as SATS has failed the past 5 times.

  • Current PE = 16.9
  • Rolling PE = 16.2
  • Dividend Yield = 4.6% (base on $2.78 stock price)

SATS is at fair value. This correction may be good for those who want to buy SATS at lower price to collect dividend.

Olam: The Bull is Tired!

Olam has been forming a multiple tops since last breakout. The current level is also close to 3 years high. Recently Olam has broken the 50D MA support and unable to break above the 50D MA. This 50D MA has turned support into resistance. It is a time to take profit if you have made handsome profit since the breakout. The next immediate support is $3.05 (Double Tops Resistance in 2008) followed by $2.845 (78.6% Fibonacci Retracement Level).