SingTel – OCBC

Testing resistance

– SingTel has rebounded as per our forecast on 15 July. The price rose into our forecasted resistance zone around S$3.60 – 3.68 over the last few trading sessions but failed to clear it.

– At this juncture, the reversal candlestick formations coupled with the strong resistance from the 50-day moving average and the downtrend line, suggest that SingTel’s upside is capped around the current levels.

– We expect the price to drift back towards the lower band of the wedge pattern around S$3.47-3.49. A break below this level would take SingTel down towards its support at S$3.16.

– We advocate caution on SingTel at this stage, and advise waiting for a convincing break above the resistance level or a break below the lower band of the wedge pattern before taking up a relevant trading strategy.

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