Singtel

Commentary:

Price of Singtel has been relatively stable for a considerable period till mid September when it started its precipitous fall. From the low of its price of $1.99, Singtel has in recent week traced out a bearish pennant formation chart pattern. This pattern in theory is a continuation pattern and price are likely to break support after this period of consolidation and resume its downward momentum on heavy volume.

Strategy:

Despite price tracing out in a pennant formation which suggestion temporarily pause before continuation of trend, nevertheless, short-term traders should bear in mind the slight possibility of reversal. As long as price break out of pennant with heavy volume (note: strong vol is very important, else it could be a trap) short-term traders can consider initiating position in the direction of the breakout. Tight stop lost policy should always be in placed.