Coming to it, here, we see a very bearish chart from Singtel.
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The price today at 3.49 has breached both it's 20D MA (3.59) and 50D MA (3.63). As much as it had slightly breached the 3.49 mark, slipping to 3.48, immediate support can be seen building at 3.49 which have held the price up till it finally closes.
The Bolliger Band can be seen expanding much in the later days, which suggest that currently, the price are relatively volatile and if anyone notices, the lower band has also been breached with it's most recent price movement, suggesting that it might be oversold.
RSI at 28.45 also shows that it Singtel is currently at the oversold region. The negative MACD value we can see also tells us that the short term moving average is below the long term moving average. As per pointed above, this signals a downward momentum and Mr Bear is in action.
Using the key Fibonacci Retracement ratio where potential areas of support could be seen at, we can see the next support level at 3.42, 3.38, 3.35 and 3.31, should it once again break the support at 3.49
I will standby at these beautiful levels, to queue behind while waiting to get some Singtel shares that is on promotion.
Now, let's take a look at the more esoteric indicators and see if tells any tale.
The MSI today (16.7594) also suggest Singtel is in the Oversold region.
However, if the downtrend is strong, this will also brings the MSI lower.
Taking a closer look, we will be able to find a relatively small money flow ratio that is below 1 if we work the formula backwards. Now this signal here is telling me that positive money flow is lesser than the negative money flow. In layman term, the money flowing out is greater than the money that is coming into it, which is not very healthy here.
Want something more esoteric?
Based on the chart, we have entered a relatively sharp zig-zac corrective wave based on Mr Elliot's theory and it seemed like we might be entering the end of a wave soon.
While waiting for the financial results for 3Q18 to be released, fundamental wise, all else remains equal apart from the latest news on it's cyber security business which is said to hit around $550 million in revenue this financial year.
Singtel's 3Q18 financial results will be released on 8th Feb 2018, which is 5 days away.
Cyber security is a good business that Singtel today is diversifying on, which will further reduce the dependence on mobile communication sector. The increased exposure in ICT will also reduces the risk of facing the declining revenue from TPG's entrant.
I remember one good phase from one wise senior - TA is all about the probability and not certainty. Hence, do take them as a pinch of salt and pardon me once again for this poorly done TA.
Do remember that the high can get higher and the low can get lower. The latter example is clearly exhibited today.
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| Singtel's chart from Google |
Hence, if we were put our glasses back on, today's market does not exhibit any significant trait that I know of that was as impactful as the China's market crash which might drag Singtel's price down back to this region.
And given that, Singtel in 2018 today, should be a company that is in a relatively well position compared to they are in 2016 with the cash on hand, reduced debt and divestment of Netlink Trust.
Nibble time.. Nibble nibble. Time to be a small little rat!
I do not recommend any buying or selling of any securities based on any post that I've written.
If you're buying in and not too sure why, do remember to find a reason to support your buying.
Buying for income? You have many other alternatives available.
Buying because it's the biggest company in SGX? It's now DBS.
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Straits Times news on Singtel Cyber Security Business can be found here.
Read:
Singtel - Special Dividends of 3.0 cents per share
