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SPH has been flirting with the 200dMA in the last few sessions. Today, it closed firmly below the 200dMA, forming an inverted white hammer, at $3.69. I am watching this counter very closely as it is my favourite blue chip for its high yield and fortress-like core business and real estate interests. Also, I have divested about half of my investment in this company at $3.95, a lower high, in an earlier session after it hit a high of $4.18 in late April. So, I would like to load up again in order to keep my portfolio balanced.
Seeing how the 200dMA is in danger of being left behind, I plotted Fibo lines which suggest that price could go as low as $3.52 which coincides with the lows formed in the first half of Nov 09.
If we look at the weekly chart, we see that the rising 50wMA has not been compromised as a support. It is at $3.63 this week. I might buy some at $3.63 as a hedge.
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