Underpinned by its generous SATS share distribution and dividend (going ex on Aug 13) SIA has made a strong 45.6% recovery from March $9.30 low to recent $13.54 high.
This is above key $12.90 historic resistance (nearest after $12.90 is $14.50) and has not only opened up trading chances around current $12.40-90 band but for medium term investors, chances are high stock would move to higher ground ahead of mid-August.
This is especially so since counter has started a new trend of pulling back above 13-day MA buy signal and swiftly covering last Monday’s minor gap causing it to fall to week’s $12.34 low.
However it managed to pick up to $12.46-50 at days’ closings in first 3 days last week helping it to surge to $12.86 on Friday and $12.90 this morning. Both instances it briefly recovered to above 13-day MA (at $12.80 now) before falling to lower end of $12.40-90 range.
SIA had briefly rallied to above $13 earlier in May (high of $13.22) and stayed well above $13 a month later for 4 days in a row, setting up bullish technical signs (eg rising monthly MACD for first time since end-2007 and should cut MA in coming weeks).
Longer term 100- and 200-days MAs too look promising in terms of bullish cut going forward.
Having crashed 55% from $20.20 peak in Oct 2007 to $9.05 a year later and a higher $9.30 low last March, stock remains well below long term average.
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