Bullish Momentum Returns: Singapore Airlines Ltd Set for Strong Upside

Date of Report: October 1, 2024
Broker: CGS International Securities Pte. Ltd.

Company Overview

Singapore Airlines Ltd provides air transportation services, engineering, pilot training, air charter, and tour wholesaling services. The company’s airline operations span across Asia, Europe, the Americas, South West Pacific, and Africa.

Technical Snapshot

Singapore Airlines Ltd is showing strong bullish potential after recent technical analysis. Key indicators signal a robust upward momentum:

1. Breakout from Symmetrical Triangle: The stock has broken out of a 5-wave symmetrical triangle formation, supported by a strong volume increase, suggesting a bullish continuation.

2. Larger Uptrend: The broader uptrend spanning three years remains intact, reinforcing the stock’s resilience. The recent price action saw a rebound at the base of the symmetrical triangle, which adds further support to the bullish outlook.

3. Ichimoku Indicator: The Ichimoku indicator shows three bullish golden crosses, adding strength to the upside potential.

4. MACD Histogram: The MACD histogram is in positive territory, with the signal line trending above the zero line, indicating a continued bullish sentiment.

5. Stochastic Oscillator: The oscillator is rising, confirming the stock’s bullish momentum.

6. ROC Indicator: The 23-period Rate of Change (ROC) has broken above the zero line, signaling positive momentum.

7. Directional Movement Index (DMI): This indicator shows renewed bullish strength, suggesting that buying pressure is increasing.

8. Volume Expansion: Volume has crossed above the 20-period moving average, confirming the bullish breakout. This volume increase further supports the bullish outlook for the stock.

Trading Strategy

• Entry Prices: Suggested entry points for the stock are at SGD 6.80, SGD 6.45, and SGD 6.30.

• Support Levels:

  • Support 1: SGD 6.37
  • Support 2: SGD 5.86

• Stop Loss: SGD 6.10

• Resistance Levels:

  • Resistance 1: SGD 6.89
  • Resistance 2: SGD 7.19

• Target Prices: The report provides multiple target price levels for bullish traders:

  • Target 1: SGD 7.00
  • Target 2: SGD 7.22
  • Target 3: SGD 7.35
  • Target 4: SGD 7.74

Analyst Information

• Analyst: CHUA Wei Ren, CMT
  • Contact: +65 6210 8612
  • Email: weiren.chua@cgsi.com

This analysis highlights the potential for a bullish continuation in Singapore Airlines Ltd, supported by strong technical indicators and a positive trading outlook.