Despite the pullback in the STI, SPC has only consolidated and barely declined. Thus, SPC has strong relative strength vis-à-vis the STI.
We have mentioned that stochastics can remain oversold for prolonged periods of time when the trend is strong and SPC has done just this. In this case, overbought stochastics is actually an indication of strength rather than the typical bearish implications that an overbought reading has.
There is resistance at S$4.78, however, upon clearing S$4.78, the next key resistance is at S$5.82 which is a good amount of upside. Recommended stop is at S$4.00.
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