Starhub is forming a rising wedge. $2.07 is an important resistance. If StarHub breakout this rising wedge with healthy volume, the target price is $2.17. If this stock fails the breakout, the stock price will fall back and gyrate within the rising wedge until the next breakout.
Starhub stock price dropped about 5% after ex-Dividend date on Nov 24. The stock price broke 20D and 50D MA support and looked very bearish. MACD is also showing Bearish Convergence and further down trend is expected. Next critical support is $1.83 which is very close to 52 weeks historical low of $1.76.
Both charts look bearish and I am waiting for the stock price to hit bottom before buying for long term investment (for dividend collection).
StarHub closed at $2.04 with a long opening marubozu candle (bullish candle) today after reported 3rd quarter result and raised its quarterly dividend from 4.5 cents to 5 cents, implied a Dividend Yield of 9.8%. The increase in quarterly dividend comes as a surprise because there is a concern over StarHub’s ability to sustain its earning and cash flow on its recent loss of BPL (Barclay Premier League) broadcasting right.
StarHub stock charts broke up the 20D MA and currently testing the 50D MA resistance at $2.04 with a spike in volume. The stock price is still below 200D MA. Immediate support is at $2.01.
Summary of Analysts’ Rating on StarHub:
