SIA: A Rebound Seen! BUT is the Selling really Over? Price 6.50.

Just exactly a month ago, before the virus situation was named a Global Pandemic, we saw SIA approaching the key 8.50 support dangerously…

On the back of news of travel restrictions being placed all over the world, airlines all around the world started selling down one by one…

And SIA was not spared too, it was seeing weakness gradually..

THIS 8.50 support was holding for more than 10 years since 2009 but seems like buyers were just not able to hold any longer,

There was already signs of downtrend from the chart even BEFORE the situations escalated, and that was in Jan 2020 where we started to see all the moving averages pointing down…

On the break down of 8.50, more selling was likely and hence some downside targets were drawn as seen..

First target to 8.00 then 7.50 as seen below..

This counter was more for CFD SHORTS to ride any weakness rather then to hold on to long positions given that this sector is one of the most heavily hit..

Not a good sign definitely for the 8.50 support to break down… 10 YEARS IT HELD! OMG!!

True enough, as per downside target drawn, we started seeing heavy sell down all the way to our targets..

Even 7.50 support gave way…

The selling was just too strong and amidst a sell down in global markets, this counter being one the most affected by the COVID 19 situation was not spared..

There were some support returning at 6.50 after the heavy sell down over the past 3 weeks.

BUT WHEN this support broke through last week, more downside was anticipated…

Target revised lower all the way to 5.00 psychological support level as seen…

SEE what I mean below..

Downtrend could very well continue and we are pretty much at an all time multiyear low… see revised target below..

FAST Forward to today…..

Over the past few days, we have seen selling all the way to a low of around 5.28 before buyers started to come back on some good short covering…

Normal, given that it has sold down by a WHOPPING 36% from when first covered when it broke the 8.50 support as mentioned above! See where we are below now..

NOW WHAT?

Well, we have rebounded all the way back to that key 6.50 support TURNED RESISTANCE now….. That was the level we broke down from last week remember?

The rebound was in line with other blue chips like the banks etc with DOW JONES rebounding by more than 2500 points over the past few days on news of a 2 trillion dollars stimulus package being pushed forward by US..

For now, well we may see some selling returning again if we are capped below this 6.50 immediate resistance… a potential retracement back down can still be on the card is situation does not improve..

However, having said that, on any further bullish move above 6.50, one can also see some more short term upside…

Still volatile RIGHT NOW, and we are pretty much right at the cross road..

SIA has announced grounding of it airplanes and cutting 96% of it’s capacity in recent days and things may still get worst before it gets better imo, cautious…

Will be watching where we go in the next few days…

Want to get ideas like these FASTER by WhatsApp as it happens?

Open a free trading account with Joey and his team here, find out why >>>  http://bit.ly/BeJoeysClient