Introduction to SingTel Analysis
The Singapore Research Team at Lim & Tan Securities has provided an in-depth analysis of SingTel, focusing on its short-term, medium-term, and long-term market trends. Their comprehensive report leverages technical analysis to provide a well-rounded view of SingTel’s performance and future potential.
Short-Term Outlook: Bullish Momentum
Lim & Tan Securities forecasts a bullish trend for SingTel in the short-term, spanning the next one to two weeks. Despite a 14% increase in share price since the trough of \$2.72 on August 12, 2024, the upward momentum is expected to continue. Notably, the Bollinger Bands, as shown in the report’s Exhibit 1, illustrate both the upper and lower bands moving upwards, signaling a strong bullish trend.
The Relative Strength Index (RSI) supports this forecast, with a current position at 53, well below the overbought threshold of 70. This suggests ample room for further appreciation before any potential pullback occurs. However, the share price upside could encounter resistance at the \$3.28 mark, the trend high established on September 24, 2024.
In case the price momentum turns negative, support is anticipated at the \$3.03 level, as indicated by the daily low on November 29, 2024. This support level may help to mitigate downside risks in the short-term.
Medium-Term Outlook: Sideways Movement
For the medium-term, the report suggests a sideways movement for SingTel. The company’s share price is projected to encounter resistance at \$3.37 and support at \$2.95. This indicates a period of consolidation where the stock might trade within this range before making a decisive move in either direction.
Long-Term Outlook: Sustained Bullish Trend
Looking at the long-term prospects, Lim & Tan Securities maintains a bullish outlook for SingTel. The resistance and support levels are pegged at \$3.60 and \$2.87, respectively. This forecast suggests that SingTel is poised for a sustained upward trend over a longer timeframe, potentially offering attractive opportunities for investors willing to hold the stock.
Conclusion and Recommendations
In conclusion, the Lim & Tan Securities team recommends a BUY for SingTel based on the current technical analysis. The combination of short-term bullish momentum, medium-term sideways stability, and long-term bullish potential makes SingTel an appealing prospect for investors. The report underscores the importance of monitoring key resistance and support levels to inform investment decisions.
