SingPost is still not out of the wood yet.
From the chart you can see that both 14SMA & 25SMA lines are still trending downwards.
No sign of U-Turn or reversal occurs.
Trade volume is also rather low.This is generally quite negative.
Breaking down of $1.605 will be the tell tale sign that it will likely to go down further South.
Current price of $1.64 is still consider rather high/expensive.
EPS of 8 cents. PE of 20.5 times for $1.64.
Trade with extra cautious.
(trade/invest base on your own decision)
Singapore Post - 28th December 2015
Singapore Post has been on a down trend mode after hitting a high of $1.935 on 27 Oct 2015. It has continued to trend lower and closed $1.61 on 24th Dec 2015.
The current price is hovering below both 14SMA & 25SMA which is rather bearish.
Also both MACD & RSI indicator are showing sign of negative divergence. This is generally not healthy/bearish and may see further weakness of the price moving downward.
From the chart you may notice on 24th Dec 2015 the selling volume is super high as being pointed by the Black arrow.
Today it has shown signed of some possible short covering and closed higher at $1.625. I think some may have taken this opportunity to exit/ cut their losses for their Long trade in order to minimize their losses.
From the historical chart dated back to June 2014, you can see that the current support price of $1.605 may not hold long judging from the Gap up that was triggered due to certain good news happened at that time. Not much obstacles /resistance from $1.605 to $1.50 that may trigger a greater fall from $1.605 to $1.50 if this support level has been broken out.
(Trade/invest base on your own decision)
