26 July 2023
SingTel had a tough time after reaching an all-time high of S$4.40 in the middle of 2015. The stock price then fell to a low of S$2.20 during the pandemic. This is a total discount of about 50% from its high.
SingTel suffered a large drop in price in 2015/2016 and then again in 2019. The drop in 2015/16, according to the analyst, was caused by the rising interest rates in Singapore as well as a fall in AUDSGD dragging down Optus's earnings. The fall in 2019 was caused definitely by the Pandemic.
Thereafter, SingTel's price was stable. It climbed as high as S$2.80 in the middle of 2020 before dropping to the present level of S$2.60 in recent weeks as shown in the following chart.
Technical Analysis
In the longer term, we are expecting SingTel to do a better job than before as shown in the following weekly chart.
This is because we are seeing SingTel's price rising its head above the Trendline T1. This indicates that SingTel is about to scale higher high. On its way up, we might expect some setbacks. But as long as the price can keep above Trend T1, we are expecting SingTel's price to go higher.
In the shorter term, we can also see SingTel's price not only rising above T1, but It has also escaped from the bearish rising wedge, W1, in the last 2 trading sessions. This provides an opportunity for traders to enter the market.
Going forward, we expect SingTel's price to test the resistance R1, R3, and R3. Resistance R1 appears to be a very strong resistance. We hope SingTel can recover its previous glory.
Disclaimer: This article is for information and educational purposes. Readers are advised to conduct their own research and study to make their own investment decisions.
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