Sunday, September 28, 2008
I anticipate a rebound in singtel shares.
Even though the green Parabolic SAR is going to touch, it looks too steep.. and hence might be a false indicator.
Even the MACD 568 looks like it is diverging too fast.
Also, generally singtel trades within the bollinger band, now its just outside the band, and together with the trend line, I expect it to have a rebound up to at least the center of the bollinger band before resuming its down trend.
Looking at the charts, apparently the rebound is short lived. MACD 568 and Parabolic SAR shows that downside is more likely.
However i feel that as long as the index does not fall below 2395. There is a chance of a rebound.
BUT! if it does fall below 2395, its time to whack the put warrants!
* About the Fibonacci retracements, it usually takes a long time..i.e a few mths, so they serve as a guide to how high it might climb. These lines act as resistance/support lines, so they can also be used to aid in trending.