SATS (SGX: S58): Price Correction Ahead, Trading Sell
Recommendation: Trading Sell
- Target Price: S$3.35
- Protective Stop: S$3.76
- Date of Recommendation: September 9, 2024
- Broker Company: UOB Kay Hian
Investment Thesis:
SATS, a major player in airport ground services and catering in Singapore, may be facing a price correction. The price could have formed a top at S$3.73, as indicated by the Relative Strength Index (RSI) entering the overbought zone. This technical indicator suggests a potential downward movement.
Key factors driving this recommendation include:
- Price Top Formation: Recent price movements suggest that SATS has reached a peak, with the RSI at overbought levels. A possible price correction could see the stock price moving lower toward S$3.35.
- Overbought RSI: The RSI indicator shows that the stock is overbought, increasing the likelihood of a correction.
Valuation and Catalysts:
The downside target price of S$3.35 is projected for SATS, with a protective stop-loss placed at S$3.76. Investors are advised to consider the overbought conditions as a signal to sell the stock in anticipation of a short-term correction.
Singapore Exchange (SGX: S68): Potential Price Decline, Trading Sell
Recommendation: Trading Sell
- Target Price: S$10.43
- Protective Stop: S$11.11
- Date of Recommendation: September 9, 2024
- Broker Company: UOB Kay Hian
Investment Thesis:
SGX may experience a price decline after reaching a recent high of S$11.05. The falling RSI from the overbought zone indicates a potential bearish movement ahead.
Key factors driving this recommendation include:
- RSI Decline: The RSI has dropped from the overbought zone, signaling potential weakness and an increased likelihood of a price decline.
- Price High Formation: SGX formed a price high at S$11.05 just two days ago, and this resistance level may indicate a reversal toward the downside.
Valuation and Catalysts:
The downside target for SGX is set at S$10.43, with a protective stop-loss at S$11.11. Investors should watch for further indications of declining momentum, which could pressure SGX’s share price lower in the near term.
Thank you
