Date: 17 September 2024
Broker: UOB Kay Hian
Technical Analysis Overview
Singapore Post (SPOST SP) is showing strong technical indicators that suggest potential upside in the near term. The stock price is currently trading above the Ichimoku cloud, which indicates that the uptrend remains intact.
Key Technical Indicators
- Price Movement: The stock is trading within the range of S$0.450-S$0.455, with the last traded price at S$0.465.
- Conversion and Base Lines: The conversion line and base line are in a bullish crossover, further reinforcing the upward trend.
- MACD: The MACD indicator is bullish and rising, which signals the possibility of the stock price moving higher in the short term.
Trading Strategy
- Target Price: The stock is projected to test a target price of S$0.505.
- Stop-Loss Level: A protective stop can be placed at S$0.440 to manage downside risk.
- Timeframe: The trade idea is expected to play out over the next 1-2 weeks, provided the stock hits the entry price range within three trading days.
Institutional Research View
In addition to the technical analysis, the broker’s institutional research has a fundamental BUY recommendation on Singapore Post, with a higher target price of S$0.61. This fundamental view supports the technical indicators and suggests potential for further gains beyond the short-term trade setup.
In conclusion, Singapore Post’s current technical setup points toward potential upside, backed by both bullish technical indicators and a favorable fundamental outlook.
