StarHub – Trend Reversal?

StarHub was on a free fall for last few trading days. Yesterday StarHub closed at $1.93 with a bullish harami candles formed. This pattern implies a pause in a down trend and is a realiable signal for a possible change in sentiment. The down trend may have stopped and the StarHub may move sideway or reverse the trend. Next session candle is important to confirm the subsequent movement. If next Monday StarHub opens with a gap up with increase in volume, a Three Inside Up pattern is formed which confirm a trend reversal.

 
 
StarHub looks very bearish and the stock price is below 20D, 50D and 200D MA. 20D MA crosses down 200D indicates strong down trend momentum in the short term. The sentiment is bad towards StarHub after losing the EPL right to SingTel and the downgrade by analysts. I am avoiding StarHub for the time being until everything is stabling down. Although the dividend yield is attrative (ex-dividend payout date in mid November), I have to be careful that I may lose more money in the stock price than the dividend payout. StarHub’s share price will probably move into consolidation phase before deciding the next move. I don’t want to put my money in StarHub and get my money stucked there long term.
 
Key indicators to watch:
  • Next immediate resistance at $1.94 and critical support at $1.83. Can StarHub break the resistance and hold above these critical supports?
  •  When can 20D MA crosses up 50D and 200D MA?

Raffles Education – Bounced back from 200D MA & reversed the trend!

What a big difference within a week! Last week the chart looked so bearish but today the stock price closed at $0.53 (with 48 million shares traded, #9 most active stocks of the day) showing a “Three Inside Up” reversal pattern after bounced back from 200D MA trend support of $0.51. Technical Indicators like Parabolic SAR, MACD, RSI and Stochastic are showing sign of reversal of bearish trend to bullish trend.

I was unable to resist this golden opportunity and entered the trade at $0.525 this evening. The support levels are pretty strong at $0.51 (200D MA) & $0.535 (61.8% Fibonacci Retracement Level).