Stock Analysis for C6L (Singapore Airlines - SIA) on SGX (Daily Chart)
1. Trend Analysis:
Overall Trend:
- The stock is in an uptrend since the low in late 2022, forming higher highs and higher lows.
- However, there was a deep pullback from 8.05 to 5.87 (mid-2023 to late 2023), which tested long-term support levels.
- Recently, the stock is recovering with a series of higher lows and a breakout past 6.50.
Higher Highs and Higher Lows:
- Higher highs: 6.02 → 7.11 → 7.60 → 7.38 → 7.14
- Higher lows: 5.26 → 5.46 → 5.53 → 6.23 → 6.20 → 6.25 (most recent low)
Trend Weakening Signs:
- There was a major downtrend after 7.60, but the stock has now stabilized.
- Recent price action shows sideways movement between 6.20 – 6.81, indicating consolidation before a potential move higher.
2. Key Price Action Signals:
Strong Trend Bars:
- The breakout above 6.81 suggests bullish momentum.
- Large bullish bars after the 6.25 low indicate strong demand.
Reversal Bars:
- 7.60 was a sharp rejection, marking a major high.
- 5.87 and 6.05 showed bullish reversals, leading to the recent uptrend.
Inside Bars (Consolidation):
- The stock had multiple tight-range bars between 6.20 – 6.50, signaling accumulation before the breakout.
Doji Bars (Indecision):
- Some doji formations around 6.50 – 6.60, but the stock resolved upwards, suggesting bullish continuation.
3. Support & Resistance Levels:
Support Levels:
- 6.20 – 6.25: Strong historical support.
- 6.00 – 6.05: Key demand zone tested multiple times.
- 5.87: Long-term low providing strong buying pressure.
Resistance Levels:
- 6.81 (current breakout level)
- 6.90 – 7.00: Minor resistance zone before testing 7.14 and 7.38.
- 7.60: The last major resistance before retesting 8.05.
4. Breakout & Pullback Analysis:
Recent Breakout:
- The stock broke out from 6.50 – 6.81 range, confirming bullish momentum.
- A retest of 6.55 – 6.60 as support could provide a buying opportunity.
Pullbacks:
- The 6.25 – 6.38 pullback was well-supported and led to a strong upward move.
- If the price pulls back to 6.60 – 6.65, it may act as support.
Strength of Breakout:
- The breakout is strong, with good volume, suggesting real buying interest.
- Need continuation above 6.90 to confirm strength.
5. Market Context & Trading Bias:
Current Market Structure:
- Transitioning from sideways range to an uptrend.
- A breakout above 6.90 – 7.00 could confirm trend continuation.
Potential Trend Change Signs:
- If 6.81 fails to hold, the stock could retest 6.55 – 6.60.
- A failure to hold 6.20 – 6.25 would shift bias to bearish.
Trader Psychology:
- Bullish Bias: The breakout suggests accumulation phase is ending.
- Fear & Indecision: Traders are watching 7.00 resistance for confirmation.
Conclusion:
- Bias: Bullish
- Key Levels to Watch:
- Breakout Zone: Above 6.81 (Bullish confirmation at 7.00)
- Support Zone: 6.55 – 6.60 (Watch for pullback)
- Major Resistance: 7.14 – 7.38 (Needs strong momentum to break)
- Trading Plan:
- Bullish Entry: On pullback to 6.55 – 6.60 or breakout above 6.90.
- Bearish Risk: Below 6.20 would shift momentum lower.
Final Thought: The price action is showing a strong recovery with a breakout from consolidation. If bulls maintain control above 6.81, the next target is 7.14 – 7.38.
Disclaimer:Please note that this analysis is for educational purposes only and should not be taken as investment advice. Trading involves significant risk, and you should consult with a financial advisor before making any decisions.
Dividend: 7.05%
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