Thursday, December 11, 2008

Bearish outlook for SPH - 11 Dec 08

I have been keeping track of SPH for sometime. I know there are many people who bought SPH just because of the fat dividends payout recently. I believe that was part of the reason why SPH manage to hold strong compared to the other major stocks. It only fell by 22% compared to STI which fell by 53% on the 3 Dec 2008.

I hope those people who solely bought for the dividends manage to cash out and take profit early on their short term trade. From the chart, it does not look pretty good for SPH. I have attached a chart of SPH below.

Technical analysis of SPH - 11 Dec 08

MACD line has cut the signal line from the top at a very steep angle coupled with a very strong volume shown in red arrow. It suggests more downside for SPH. The first support may be $3.14 which was the low on the 28 Oct 2008. The next support could probably be the oversold level on the RSI(14) indicator as shown in red circle. So I believe it is prudent to hold your purchase if you are planning to buy SPH.

2 comments:

Mike Dirnt said...

i think some people may have misinterpreted my meaning of bearish. i meant its short term outlook based on chart. there is no doubt SPH is fundamentally a good stock to hold. just that i prefer to catch at a lower price :)

Mike Dirnt said...

thanks donald. there is nothing complicated and intelligent about my blog. just some interesting information to share and useful materials especially for the newbies :)