SBS Transit - 3 Jan 2025

Price Action & Volume Analysis for SBS Transit (S61 - SGX)

1. Trend Overview

• The stock shows a downtrend from its peak near 2.75 SGD (July 2023) to the current level of 2.43 SGD (February 2025).
• Lower highs and lower lows indicate a bearish structure.

2. Key Support & Resistance Zones

• Support Levels:

  • 2.38 - 2.39 SGD (November 2024) – A strong demand zone with price rejection.
  • 2.35 SGD (October 2024) – A significant low with a reversal attempt.
  • 2.41 - 2.43 SGD (February 2025) – Holding as minor support.

• Resistance Levels:

  • 2.50 - 2.52 SGD (August 2024 & November 2024) – Failed breakouts indicate strong supply.
  • 2.56 - 2.65 SGD (April 2024 to June 2024) – A previous consolidation zone that acted as resistance.
  • 2.75 SGD (July 2023) – Major swing high.

3. Volume Analysis

• Increased volume near lows (October 2024 & November 2024) suggests accumulation.
• Declining volume in recent weeks (January 2025 - February 2025) indicates weak buying interest.
• Heavy selling volume (July 2023, April 2024) confirmed bearish breakdowns.

4. Current Market Sentiment

• Price hovering near support (2.41 - 2.43 SGD) with low volume → Potential range-bound movement.
• If price breaks below 2.38 SGD, further downside towards 2.35 SGD is likely.
• If price reclaims 2.50 SGD, it may attempt a trend reversal.

5. Trading Outlook

• Bullish Signal: Needs a breakout above 2.50 - 2.52 SGD with strong volume.
• Bearish Signal: A close below 2.38 SGD may trigger more downside.
• Neutral Zone: Between 2.41 - 2.46 SGD, waiting for direction confirmation.

Disclaimer: This analysis is for educational purposes only and should not be considered investment advice. Trading involves significant risk of loss and you should consult with a financial advisor before making any investment decisions.

Dividend:   4.5%