When to add SIA (C6L:SGX), technically Supply and demand are in a tug-of-war.
Investor enthusiasm spiked when Singapore Airlines (SIA, Stock Code: C6L) recently announced a net profit of S$2.16 billion for the fiscal year ending March, a remarkable rebound from a loss of S$962 million the previous year.
Yet, this optimism took a hit after Temasek Holdings offloaded approximately S$400 million worth of SIA shares in late June, which equates to a 1.85% stake, triggering a significant drop in the share price.
From a technical standpoint, SIA's stocks currently teeter in a neutral zone, caught in a tug-of-war between buyers and sellers vying for market dominance.
In summary, investors might want to consider increasing their stake in SIA if the share price surpasses S$7.49, as this would indicate that the technical Supply Gap has been filled. Conversely, if the share price slips below S$7.11, it may be wise to reduce holdings or abstain from purchasing shares for the time being. This is because trading below this key support level — a point marked by a high volume of transactions — suggests that sellers have gained the upper hand, and investors might find it prudent to stay on the sidelines during this period.
As always, please note that this blog post contains general information only and does not constitute financial advice. All potential investments should be carefully considered in light of the individual's personal circumstances and risk tolerance.
Blog disclaimers apply.