Understanding Market Behaviour of SingTel (Today)

1. Singtel Opened @ $2.40 and then went down to $2.39 @ point 2


2. A lots of buyers who have positioned wrong at point 1 want out due to STI bearish and emotionally unhappy


3. Supply and demand exchanged and price rose to $2.40 again. At this point, previous unhappy traders bailed out and possible short covering of other existing buyers. This increased the supply and drove price down to $2.39 @ point 4


4. Formation of Resistance ($2.40) and Support ($2.39) occurred. This is the so called trading range. If market looks bearish, a slight drop will drive it downward.


5. So it did. ($2.38) occurred. And again it drove down to close @ $2.37 for the same rational!

N/B: Only looking at the big picture. Slight spike and brief trading @ $2.42 and $2.36 (noise) are not considered due to low trading volume.