SPH: Another white candle.

My favourite blue chip is in top form and has been advancing for several days in a row.  Today, another white candle was formed as price closed at the high of $4.13.  Could we see a retest of $4.20?

Some analysts are saying that there could be a bumper dividend and that is driving accumulation.  Some people are saying that it is just quarterly window dressing and that it is just a blip.  Which camp is right?  I don't know but volume has been pretty high in the last two sessions as MACD formed a bullish crossover and rose in positive territory. The MFI has formed an almost straight line up and seems set to cross into overbought territory in the next session. RSI has already peeked into overbought territory.  OBV, although rising, does not show very strong accumulation activity.

What would I do? If SPH does retest $4.20, I expect that to be a strong resistance as many who missed selling then would sell now.  So, I would sell some at $4.20 and buy back if price retraces to the 20dMA.  Good luck to fellow shareholders.

Related post:
SPH: Doji at $4.00.

SPH +0.7%; More upside as bumper dividend eyed: UOB
Wednesday, 01 September 2010

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