Singapore Post Holdings: CIMB has Technical BUY Call. Note that the stock fell below its long term support trend line back in Nov. House had expected a deep correction but instead prices
moved sideways in the last 5 mths, forming a triangle pattern. Note that MACD has been swinging below and above the zero line, in line with the triangle pattern and RSI, has also moved sideways without reaching the overbought or oversold region….
House think it is a good time to switch camp to the bulls as a triangle means that the uptrend from the Mar09 low is not over. Recommend aggressive traders may choose to go long now with a stop placed below $1.13. A breakout above $1.19 would likely see prices head above the recent high of $1.25 towards $1.28- 1.30 next. Falling below $1.13 would likely mean that the stock is still in correction mode.
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