Thursday, August 13, 2009

SingPost - Strong breakout positive

Likely more upside. SingPost has staged a strong break above the previous 2009 high of $0.94 yesterday on heavy volume and this bodes well for the stock.

Initial resistance at $1.00. Should it be able to hold above this new resistance-turned-support, we expect the stock to try for the resistance at $1.00 (upper boundary of 10-month uptrend channel and key support-turned-resistance level) next; breaking which, we see the subsequent key resistance at $1.05 (minor peaks in Jul and Aug '08).

RSI in overbought territory. However, with the RSI already showing heavily overbought signals, we would not rule out a nearterm technical correction.

Immediate support at $0.94. Below the immediate support at $0.94, we expect the next support at $0.905 (resistance-turnedsupport level and 50-day MA), ahead of $0.855 (minor troughs in Jul '09 and lower boundary of 10-month uptrend channel).

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