Tuesday, October 19th, 2021

Can SATS(SGX:S58) continue to move up?

Can SATS(SGX:S58) continue to move up?

SATS is Singapore Changi Airport’s primary ground-handling and in-flight catering service provider. Over 80% of Changi Airport’s ground handling and catering activities are owned by SATS.

In Asia, SATS provides gateway and catering services. Airline catering, food distribution and logistics, industrial catering, and linen and laundry services are all a part of SATS food services.

Recent developments:

SATS said on July 26 that it’ll build a S$37 million central kitchen at a Bengaluru airport, marking the company’s first investment within the Indian market.

Through the manufacturing, distribution, and export of food goods, the central kitchen is anticipated to service both India’s internal market and international customers. SATS (Thailand) Co, an indirect subsidiary of in-flight caterer SATS, agreed to shop for 85 percent of a food-manufacturing plant owner for 484.5 million baht (S$21 million) from Thailand-listed Bangkok Ranch on June 8.

Food City is that the company, and its major asset could be a food manufacturing facility in Pathumthani, Thailand. in keeping with SATS, the power are going to be adjusted after the acquisition to specialize in the manufacture of 90,000 ready-to-eat meals on a daily basis. the power, which opened in 2016, incorporates a acreage of 30,000 square meters. 

Can SATS(SGX:S58) continue to move up?

Last Friday, August 20, the Sharechart scanner detected a golden cross on the chart of SATS Services (S58). The stock had risen above its 50-day and 100-day moving averages. This is a long-term bullish sign, and we expect the stock to continue its uptrend. The uptrend began in the fourth quarter of last year when the stock broke out of both moving averages in a similar fashion.

If the 50-day moving average subsequently rises above the 100-day moving average, it would confirm the sustainability of the uptrend. It should be noted that there is a divergence between the price and the long-term momentum oscillator indicator when the price made a new low in mid-May this year and Mid July.

A divergence occurs when price moves in the opposite direction of a technical indicator. In this case, it means that when the momentum indicator was making a lower low, the price was making a higher low. This shows that the price movement is very strong.

Can SATS(SGX:S58) continue to move up?

The price of SATS Services was moving in a sideways range even though the Supertrend indicator and the Elder Ray indicator formed a golden cross in the last two weeks. However, the golden cross of these two indicators confirms that the trend of the chart has changed from a downtrend to an uptrend.

When the price broke out last Friday, the indicator Elder Ray simultaneously exceeded the level of 0.15. This confirms that the momentum of the breakout is strong. Both the Supertrend indicator and the Elder Ray indicator are among Shareschart.com’s standard indicators.

Can SATS(SGX:S58) continue to move up?

Last Friday’s price breakout was also a breakout from a typical triangle pattern that had formed over the last 4 months. A triangle is a chart pattern that indicates a pause in the current trend by establishing trend lines along a converging price range. Although less common, a triangle pattern can also be a reversal pattern.

The first price target based on the projection of the triangle pattern is $4.36, the 50% Fibonacci projection of the triangle breakout.

Sats Services

However, traders should note that the Shareshart “Support and Resistance indicator” indicates that the next resistance level on this chart is $4.22 and the stop loss level is $3.97.

This means that the price could enter a short-term corrective phase or sideways consolidation if the price reaches the $4.22 level. This will be the immediate resistance on the chart before the price subsequently heads for the price target of $4.36.

SATS Services

Beyond that, the next potential price target is $4.77, the 100% Fibonacci projection of the triangle breakout. It could take a few months for price to reach this level. The above 2 targets are 5.5% and 13. 5% from last Friday’s close

Sats Services

To illustrate, the chart of SATS Services exhibited a similar triangle reversal pattern last March when the stock price hit a multi-year low.

SATS Services

After breaking out above the triangle pattern, the price reached the 100% Fibonacci projection level, and since then it has entered a one- year sideways consolidation.

SATS Services

If history repeats itself, price could reach the 100% Fibonacci projection level on the breakout from the current triangle in the same manner. This coincided with the multi-year resistance on the chart.

Leave a Reply

Your email address will not be published. Required fields are marked *