SPH

SPH - 20th January 2016

SPH has been on a continuous downtrend mode after going ex.dividend on 9th December 2015 .
From the chart we can see that the price has been falling from the high of $3.96 on 31st December 2015 and close the critical support level at $3.50.

From the past 3 days trading it has been hitting $3.50 support level and move up or stay at $3.50 level.
This is happening could be due to the company buying back share to support the price from falling down. As announced from SGX website the company today just bought back 500,000 shares between $3.51 to $3.52 per share.

The current price is staying way below both 14SMA & 25SMA lines which is rather negative.

Also both MACD & RSI are pointing downwards which may provide further indication that the share price may continue to trend lower.

Looks like $3.50 level may not be able to hold long. As it has been continuously re-tested and may soon breaking down and head lower towards $3.20 then $3.00.
Looking back at the historical chart pattern , there seems to be not much support/challenges to prevent the price from falling from $3.50 to $3.20.


(trade base on your own decision)