Singapore Exchange (SGX): Trend Reversal

Singapore Exchange (SGX) has reached the price target of $9.20 after breaking out from the Falling Wedge pattern. A Bearish Engulfing candlestick patterns, which is a reversal pattern, was observed at about $10.00 (52 weeks high level).

Current PE of SGX is 31.77 which is considered over value.

Current Stock Price = $9.54

  • Rolling PE = 33.87
  • FY10 PE = 31.77
  • FY09 PE = 33.27
  • FY08 PE = 21.26
  • FY07 PE = 24.11

Technically and Fundamentally, SGX does not have enough strength to continue the bull run. A Trend Reversal is inevitable. Next crucial support at $8.805 (78.6% Fibonacci Retracement Level), followed by $7.718 (61.8% Fibonacci Retracement Level).

This Post Has 2 Comments

  1. Marubozu

    Did anyone observe that someone pushed SGX to above $10.00 for the past 1.5 months and now the analysts downgrade SGX?
    Latest report CIMB downgrades SGX from $10.86 to $8.26 after the announcement of SGX to acquire ASX.

    Those late comers who chase the SGX stock are getting burnt badly…..

    Lessons Learnt and Reminders for me AGAIN:
    (1) Never Chase the Price. We as retail investors can never beat those professional traders.
    (2) Always Buy Low Sell High. NEVER Buy High Sell Higher!


  2. Marubozu

    Analysts Recommendation:

    Citigroup – Buy with target price of S$10.60
    DMG – Neutral with target price of S$8.33
    Kim Eng – Hold with target price of S$8.33

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