The telecommunication companies (Starhub CC3, Singtel Z74, M1 B2F) has generated heightened interest from the retail investors and traders due to its major correction during the recent months. At the current junction, there is a significant divergence among their absolute price movement. Let’s take a look.
M1 (SGX: B2F)
M1 has underwent a significant correction (-32.8%) over the past year, generating heightened interest from the retail scene. As M1 is still resisted within its upper downtrend line, the significant increase in the trading volume over the past 4 months may signify the strength of support from its price recovery at $2.13 level.
The levels to watch for M1 are $2.62 immediate resistance level, for the first establishment of uptrending momentum in M1. Support to watch is $2.33, a resumption of its downtrend.
Singtel (SGX: Z74)
Singtel extended the strongest rally from the sector’s bottom since January 2016, with a recovery of +16.5% over the past 5 months. As highlighted in the chart above, Singtel is the only teleco with a clear establishment of its uptrending channel, breaching price resistance and establishing higher swing lows in its momentum. However, do note that Singtel is currently trading just a mere 2% towards the major resistance at $4.00, which may not represent a good risk reward ratio to chase this rally.
The levels to watch for Singtel are $4.00 major resistance level, and support at $3.75 has to hold for further potential upside on this counter.
Starhub (SGX: CC3)
Starhub is rallying a 5 week consecutive positive streak, meeting its major resistance at $3.60 level. At the current junction, the MACD Histogram has reflected a bearish divergence against the absolute price rally of Starhub. On RSI Indicator, Starhub is currently trading at 85.2% overbought range that was last seen in April 2015. Such developments signifies a higher tendency of weakness for this counter ahead.
The levels to watch for Starhub are $3.60 major resistance level, and support at $3.15. The violation of $3.15 support will resume the mid term downtrend channel for Starhub.