Date: 28 October 2024
Broker: UOB Kay Hian

Technical Buy Recommendation

UOB Kay Hian has recommended a “Trading Buy” for SATS (SATS SP), based on positive technical indicators. The stock’s current price stands at S$4.01, with an advised trading range of S$3.83–3.84. The broker has set a target price of S$4.32, supported by technical patterns and upward momentum in its market trend.

Technical Indicators Supporting Buy

Several technical indicators suggest a sustained bullish outlook for SATS:

• Price Above Cloud: SATS is currently trading above the Ichimoku cloud, a signal that the uptrend remains intact.
• Bullish Crossover: The conversion line and base line have experienced a bullish crossover, further confirming the potential for continued price appreciation.
• Positive MACD Movement: The Moving Average Convergence Divergence (MACD) is in a rising trend, reinforcing the bullish stance on SATS.

Trade Parameters

To manage downside risk, UOB Kay Hian recommends setting a protective stop at S$3.70. The projected timeframe for this trade idea spans 1–2 weeks, provided the stock reaches the specified entry price within three trading days.

Institutional Research Support

The recommendation is further bolstered by UOB Kay Hian’s institutional research, which also holds a “Fundamental BUY” rating for SATS, with a target price of S$4.00. This aligns the technical buy outlook with a positive long-term fundamental perspective, making SATS a strategically favorable choice for investors.