Singtel’s resilience is evident in the market post Q3 reports. The actual impact of the net losses does not seem to be able to cause doubt in the market as of now. Overall, Singtel is still doing relatively well for a matured company in Singapore. Current developments and outlooks for 5G also boost investors confidence. Now that it has risen, lets look at its resistance to know when to exit and take profits.
Near term outlook (Using Weekly Chart)
There is limited room for Singtel to continue rallying, furthermore it might have been a pump and dump situation earlier today with 23 million volume traded before noon. Do take note during lunch time. that prices retreated and there is a likely hood for Singtel to go back down to 3.3 or lower in the next few days.
Monthly Chart Outlook
Do note that the 3.5 resistance was the support for more than 3 years before the “great fall” of Singtel triggered by the inception of a Fourth Telco, TPG. My perspective from an investor’s point of view is that this price rallying is unsustainable. No company can make an exception for its losses with a statement saying that barring losses, we made a profit. As for why the price is still going up is hyped from news that prices for telco service in India will likely go up. All in all, since the hype is over, its time to TP and let it rest for a while.
Author’s Call
- There is a need to consider TP right now
- Resistance at 3.45 and 3.5
- Trade volumes are very high which signals pump and dump scenarios
- Overall still have to pay its dues for the losses with india
- Rentry at around 3.2, 3.1 and 3 will be ideal (intrenches)
Author’s Call (Previous – 14 Nov)
- Buy at near supports (3.25, 3.16, 3.10) for greater assurance (buy in batches if capital permits)
- Promising to buy and keep for 6.8 cents dividends (volume above 3000 shares)
- Setting Lower limit at $2.80 at the moment. (Maintained)
- Unlikely to find exit as of now
- Awaiting further news on 5G network developments
