SGX seems to be on a downtrend mode after hitting the high of $7.73 on 30th Dec 2015 and continue to head lower to touch $6.61 on 19th Jan 2016. This is generally rather bearish.
After hitting the low of $6.61 on 19th Jan 2016 it was experiencing a technical rebound and managed to push the share price higher to test $7.11 on 1st Feb 2016. Since then it was trading in a volatile price movement of between $6.75 to $7.09.
From the chart we can observe that the 14SMA had just crossed over 20SMA line which may be a positive indication that the share price may move up from the current price of $6.86 as of 12th Feb 2016.
Both MACD & RSI indicators are also showing a positive divergence which may provide further indication that the share price may continue to move up to test $7.00 soon.
Breaking out of $7.00 with good volume that may see the price heading higher to re-visit $7.11 with extension to $7.50.
As the current STI market is still on a downtrend mode. Therefore, any long/buy trade with profit should be viewed as a short term gains to lock in your profit first due to market volatility.
(trade base on your own decision)
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