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Thursday, December 30, 2010

Starhub Breakout in the Making?

Since my last post on Starhub (see Two Extremes: Starhub - Falling Star, Singpost - Blasting Off! for discussion), thankfully, what could have been the start of a steeper downtrend didn't materialize and prices bounced back to into its channel. The weekly chart below provides a clearer picture.


As seen above, Starhub has reached the upper regions of the channel and may well be poised to break out. In the daily chart below, we see the breakout occuring yesterday with price closing higher than the channel lines.


With the MACD giving a buy signal and turning up, a double bottoming of the RSI on the 17th and 22nd of Dec which is now rising, together with the OBV and Stochastics, it may jolly well be the opportunity to enter this stock. However, as ADX doesn't show a strong trend and with MFI yet to turn up, if this is nothing more than a rebound, a drop back to $2.63 may see the price back in the channel with the 100 day moving average providing support. Only time will tell.

That said, the announcement this morning in Today papers of Starhub's multi-year, multi-million dollar deal sealed to service Marina Bay Sands, may be the catalyst for stock prices to rise.

Cheers,
~K

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