The current sentiment on Genting Singapore shares is bullish, and the stock’s downtrend may end soon, according to the charts, Phillip Securities said on Thursday.
Since hitting a high of S$1.39 in November, the price has failed to close above that level, resulting in the formation of a double-top pattern, Phillip said.
The second failure to top the S$1.39 high in late January kickstarted the recent selloff, sending the share below the key support areas at S$1.29 and S$1.215, the brokerage said. It added that the selloff also pushed the 20-day moving average to cross below the 60-day moving average in February, signalling a shift in the immediate trend to the downside.
But Phillip said the long-term trend remained positive, with the heavy selling pushing the Relative Strength Index into oversold territory, which usually signals a near-term rebound.
“We expect a mean reversion to occur soon where the price should reverse higher,” it said.
It added that there was a hammer rejection with increasing volume on Wednesday, suggesting a near-term bottom.
”Once the bullish follow-through occurs, expect the price to rebound higher to retest the S$1.19 resistance are, followed by S$1.26,” it said.
It tipped S$1.13 as an entry price, S$1.03 as a stop loss and S$1.26 as a take profit level.
The stock ended Thursday up 0.89 percent at S$1.13.
