ComfortDelgro has a diversified portfolio for Public Transport (SBS Transit), Taxi (Comfort and City Cab), Automotive & Engineering Services, Inspection and Testing (Vicom), driving centre, Car Rental and leasing and bus station businesses. Additionally, there also have a diversified global footprint in the area of Transport which is more resilient towards recession. Not to mention that its business is almost a monopoly in Singapore.
General Trend (Daily Chart)
Based on the daily chart, we can see that the graph has been bouncing aggressively on the uptrend support line. Though it has recently broke the horizontal support line at 2.40, this uptrend support will still be its contingency.
Short term outlook (Using Weekly Chart)
Do note there is a contingency entry point at Entry 2 due to lack of confidence that the uptrend support (extrapolated from the weekly chart) would hold. As a rule for my own trading philosophy, enter at a support and plan ahead for unexpected outcomes. Currently, CDG faces some pressure by competitors like Grab and questions about its public transport income reports on 13 Nov 2019. My take is that since price has been hammered ahead of time, the likelihood for further downside remains at 2.15 if results are below expectations.
Author’s Call
- Short term outlook stable (Though short volumes are still high)
- Second entry point identified at 2.15
- Exit at around 2.45 for around 12-15 cents profit
- Might hit target ahead of 13 November (will update if suitable to hold for longer term)
- US market hitting new high (GSPC 3066, DJI 27347) – might surge on monday 4 nov.
