Singtel Rebounds

In my last post on Singtel, I mentioned that prices look set for a rebound and I was very tempted to buy in at that price of $3.04 with the 200 day moving average supporting more selling. (See Singtel Attractive? for discussion.) True enough, Singtel bottomed then and have broke through the $3.08 resistance pointed out. See chart below for a clearer picture.

With MACD providing a buy signal and Stochastics crossing the oversold region, prices may rebound even higher to find support at its 100dma where it was formerly before going XD. However, with what seems like a wedge forming, price must not to drop back to close below $3.09 to avoid being caught in this which may eventually send prices even lower. Though it seems unlikely to happen with the bottoming of the RSI and a pick up of volume, MFI and ADX has yet to turn up convincingly. Should prices close above $3.09, it is likely that prices will continue trending upwards. 

Again with PE being less expensive than its peers at 12.6, Singtel could be more attractive as a buy than the other two especially with a historical PE average of 13.4. However, the higher yields offered by Starhub at 7.2% and M1 at 5.7% compared to Singtel's low 4.6%, may delay the realization of its value.

Still waiting for a 5-6% yield and not vested,

~K

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