SPH has been trending down strongly

SPH has been trending down strongly. It is trading far below the 200 day moving average. It is also below the 50 day and 30 day.

SPH recently tested support at S$2.31 before rallying to S$2.50. It is currently trading close to the S$2.31 level again, indicating that buying that came in to push price up to S$2.50 has been used up. A close below S$2.31 should cause SPH to slide towards S$2.07.

While stochastics is oversold, a strong trend can cause it to remain oversold for prolonged periods of time and we should prioritise the trend over a stochastic reading that is less than 20.

We recommend a sell at or below $S2.30. Take profits at S$2.12, slightly above support.

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