StarHub – Hammer!

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Starhub showed a Hammer in the last trading day after the recent sell down. This Hammer is also near the 61.8% Fibonacci Retracement Level which is a significant support indicates a high possibility of trend reversal. Next immediate resistance is at about $2.279 (78.6% FR level and 50D MA).

Although there is a potential trend reversal and the price will go up, but the upside potential of about 3.6% (from $2.20 to $2.28) does not look attractive to me unless I want to acquire Starhub for the quarterly dividend. Anyway, May usually is a bearish month and I will take a wait and see approach to see whether Starhub can drop below $2.00.

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SGX – On Down Trend

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SGX has broken 4 supports (20D MA, 50D MA, 200D MA and 78.6% Fibonacci Retracement Level) in one week. Base on the chart pattern, SGX seems to trading in a slow down trend as the new low is always trading lower than previous low.

Key levels to watch:

  • SGX may rebound from $7.701 (78.6% FR level) but it is important to see whether SGX can break the 50D MA resistance (at about $7.90). Base on the current sentiment in financial sectors and Eurean PIGS debt crisis, it is unlikely to happen base on my opinion. However, I can only trust the chart more than my opinion base on my last lesson learnt.
  • If $7.701 support is broken, the near term support is the down trend support at about $7.30. This support may not be strong because it is not very obvious. SGX may go down to $6.878 (61.8% Fibobacci Retracement Level) if this weak down trend support is broken.

In summary, SGX chart is bearish and I am waiting for a clear reversal pattern to pick up this blue chip.

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Singapore Press Holding (SPH) – Breaks the Trend Support

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SPH broke all 3 key supports (20D MA, 50D MA and up trend support) in last trading week. The stock price is approacing $3.736 which is 78.6% Fibonacci Retracement Support Level. There may be a small rebound in the coming week from this support level.  However, if SPH cannot go above $3.90 (the uptrend support and 50D MA), the next important support to watch is 200D MA at about $3.70. SPH may go as low as $3.395 if this 200D MA support is broken.

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