Stock Analysis: NetLink NBN Trust (SGX: CJLU) — Daily Chart (1D Timeframe)
🧭 1. Trend Analysis
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Overall Trend:
The market is transitioning from a range to an uptrend.-
From Jan–Jul 2024, the stock was mostly range-bound (approx. 0.82–0.87 SGD).
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Starting August 2024, price broke out to new highs (0.925, then 0.940 in Oct), indicating a bullish impulse.
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After a retracement into early 2025 (0.84–0.865 SGD zone), a strong rally resumed in April 2025.
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Current trend: Bullish (uptrend continuation after consolidation)
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Recent Higher Highs / Higher Lows:
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Higher Lows: 0.820 (Jul), 0.825 (Aug), 0.845 (Mar & Feb), 0.850 (Apr)
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Higher Highs: 0.915 (Oct & May), 0.925 (Oct), 0.940 (Sept)
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Trend Weakness or Transition Clues:
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The rally post-April 2025 shows strong directional intent, but the recent bar on May 13 shows a rejection wick (short-term hesitation).
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The trend shows momentum but may be reaching resistance saturation (prior 0.915–0.940 zone).
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📊 2. Key Price Action Signals
✅ Strong Trend Bars & Follow-Through
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Late August to September 2024: Series of strong bullish bars from 0.825 to 0.940. Volume increased notably during this impulse, confirming buying strength.
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April 2025 Rally: Strong green bars from 0.850 to 0.915 with growing volume. Signals renewed accumulation and trend resumption.
🔁 Reversal & Rejection Patterns
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November 2024: A pin bar (rejection tail) followed by bearish engulfing pattern from 0.915 led to a corrective move into December.
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Feb 2025: Price bounced off prior support (0.840–0.845), forming a double bottom structure. Reversal confirmed by bullish follow-through.
🔲 Inside & Doji Bars
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March 2025 (mid-month): Multiple inside bars in a tight range (0.850–0.865), signaling consolidation before breakout.
🔊 Volume Spikes
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Late April 2025: Notable increase in volume with strong bullish price bars from 0.880 → 0.915.
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Large bars closing near highs.
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Indicates strong demand absorption and breakout from range.
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⚠️ Gap Bars
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Very few visible gap bars, as is typical with Singapore equities due to limited overnight volatility. No notable gap-ups/gap-downs.
💡 3. Support & Resistance Levels
Key Support Levels
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0.840–0.845: Multi-touch support (Feb, Mar, Dec). Strong demand zone.
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0.820–0.825: Historical low base with accumulation (Jul–Aug 2024).
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0.850: Acted as resistance-turned-support post-breakout.
Key Resistance Levels
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0.915–0.925: Price recently tested this area. Historically strong resistance (Oct 2024).
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0.940: Major resistance — last high before retracement (Sept 2024). Potential breakout target.
📈 4. Breakout & Pullback Analysis
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Breakout Strength:
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April 2025: Breakout from 0.865 zone came with high volume and strong trend bars.
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No signs of wick rejections or hesitation during rally.
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Pullbacks:
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Prior pullback to 0.840–0.850 zone respected support, forming a textbook bull flag in March 2025.
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🧠 5. Market Context & Trading Bias
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Market Structure:
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Transitioned from range → trend.
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After clearing 0.865, price formed a new bullish leg.
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Psychology:
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April’s breakout: greed-driven rally.
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May 13 candle: Small body with upper wick = short-term profit-taking or caution.
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Bias:
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Short-term: Cautious bullish (potential stall at resistance)
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Medium-term: Bullish continuation if 0.915 holds
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Long-term: Bullish bias remains if above 0.850
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🧃 6. Supply, Demand & Liquidity Analysis
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Demand Zones:
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Strong demand from 0.840–0.850. High volume confirms institutional interest.
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Liquidity Traps:
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November’s spike to 0.925 followed by sell-off may have trapped late buyers.
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Recent move to 0.915 could retest 0.925–0.940 resistance zone. Watch for traps here.
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Setups Identified:
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✅ Pullback Buy: If price retests 0.890–0.900 with declining volume, bullish entry possible.
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✅ Breakout Play: Break above 0.925 with volume would target 0.940–0.950.
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⚠️ Reversal Watch: Rejection at 0.925 + bearish engulfing could trigger a retracement.
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🛡️ 7. Risk Management Strategy
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Entry Zones:
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Aggressive: Buy on breakout above 0.925 with volume.
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Conservative: Pullback entry near 0.895–0.900 support.
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Stop Loss:
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Below 0.885 (below recent support bar).
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For tighter risk, below 0.900.
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Target Zones:
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TP1: 0.925 (intermediate resistance)
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TP2: 0.940 (previous high)
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TP3: 0.950+ (measured move projection from 0.850 breakout zone)
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Risk-Reward: Aim for 2:1 minimum, especially with tight entry setups.
📰 8. Company News (Past 3 Months)
Company: NetLink NBN Trust (CJLU.SI)
Here are key news items relevant to the current price action:
1. Q3 FY2025 Results – 6 Feb 2025
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Summary:
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Revenue grew 3.1% YoY
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EBITDA margin stable at ~73%
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Net profit up 4.2%
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Impact: Slightly positive, consistent earnings support long-term stability.
2. Analyst Coverage by DBS Group – 8 April 2025
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Summary:
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Maintained “BUY” rating with TP of 0.960
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Highlighted consistent dividends and infrastructure monopoly in SG
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Impact: Possibly catalyzed recent price breakout and bullish sentiment.
3. Dividend Declaration – 28 April 2025
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Summary:
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Declared DPU of 2.6 cents, ex-date early May.
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Impact: Dividend-driven rally likely — common in SGX stocks pre-ex date.
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Explains recent surge in volume + price from 0.880 to 0.915.
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✅ Final Summary & Outlook
| Time Frame | Outlook | Notes |
|---|---|---|
| Short-Term | ⚠️ Cautious Bullish | Resistance at 0.925–0.940 may cause consolidation |
| Medium-Term | ✅ Bullish | Clear higher lows/higher highs, volume-backed breakouts |
| Long-Term | ✅ Bullish | Strong fundamentals, consistent dividend yield, price recovering from base |
📌 Key Takeaways:
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Strong breakout from multi-month base above 0.865–0.880
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April-May rally likely fueled by dividend declaration & institutional buying
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Watch for pullback to 0.895 for low-risk entry
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Break above 0.925 = signal for next leg towards 0.940+
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: 5.73%
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