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A reader saw my technical analysis (TA) for ComfortDelgro and asked if I did the same for SingTel?
Translated:
"Please share your TA for SingTel."
OK, I don't do TA on request anymore but since I am in the process of building a larger stake in SingTel, here is a quick TA on SingTel:
Since going XD, SingTel saw its share price plunging but I don't think this has anything to do with its business fundamentals which do not seem to have deteriorated enough to warrant the huge decline in price.
If the fundamentals at $3.79 a share are the same as the fundamentals at $3.58 a share, logically, what should someone who was buying at $3.79 do now?
Having said that, price movement is sentiment driven most of the time and this is what we call "volatility".
There is no accounting for prices and Mr. Market does not care what we think.
For those who bought at a much higher price only to "cut losses" now, I only hope they do not regret later on.
If I were in their shoes, I would ask if I did not buy at those higher prices, would I be buying now?
This question will probably yield a more rational answer.
Well, it has always worked for me.
If I were in their shoes, I would ask if I did not buy at those higher prices, would I be buying now?
This question will probably yield a more rational answer.
Well, it has always worked for me.
To be fair and also to be rational, what they do depends on their motivation for buying into SingTel when they did.
Always remember that TA is about probability and not certainty.
It is quite clear to me that there is support at $3.58 a share but it is not a strong support per se.
The Fibo golden ratios are at $3.53, $3.49 and $3.45.
These supports might or might not be tested but if the downtrend should persist, these are the prices which could see me accumulating.
These supports might or might not be tested but if the downtrend should persist, these are the prices which could see me accumulating.
In terms of momentum oscillators, both MFI and CMF are pretty benign which suggests to me that the bears might lack the strength to push the price much lower although the huge gap down in price is bearish and that is what the MACD reflects.
Although I believe that investing in SingTel at $3.58 provides value for money and that money isn't flowing rapidly out of the stock, it might not be a good idea to throw in everything including the kitchen sink at this point either.
I anyhow talk to myself only. I blur.
Related post:
Technical analysis of ComfortDelgro.
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