Starhub pullback resisted by 3-year support resistance zone
With Internet TV penetration in Singapore on the rise, this chart does not bode well for Starhub. Based on the weekly chart, price has been on decline since topping in 2013. New 52-week lows were printed both 2015 and since January this year. This signals further losses until reversal pattern can be found. Recent uptrend is evidently pullback to re-test 3-year support resistance zone at 3.70 region. With that big black candle for this week (updated yesterday EOD), price action verifies 3.70 as still valid resistance.
Important to note yesterday selldown with high volume. Selldown accompanied by high volume is a negative scenario. For every buy there is an equal sell. High volume signals strong participation in trading following announcement of 2015 annual results, outcome of black candle indicates that buyers lost. This could lead to another selling wave if down trend persists. Note also how 16 Feb trading turned out to be a nasty false break – bull trap over over 3.70 which besides being 3-year level – was key resistance since September last year.
Back in July 2015, I warned that Starhub had broken a long term trend line from 2005.
This is something significant that long term investors are usually concerned with. Simple reason: long term trend line broken -> that same trend is over.