StarHub – Riding the Bigger Bandwidth?

Trend: Uptrend, 20ma up, MacD above 0

Support: 2.39 (20ma & 50ma close), 2.31 (100ma)

Resistance: 2.54, 2.65

Observations
Candlestick – Bullish harami a like candle.
Histogram – 4Rs. No Bearish Divergence.
RSI – Around close to 70%. Not overbought. No Bearish Divergence.
Stochastic – No Bullish Crossover yet.
Bollinger Band – At mid band.

Conclusion:
Starhub recently had a strong surge after the announcement of its launch of its fibre optic service and pricing plans. But this positive emotion slowly cooled down as the price retraces from its high. Will Starhub carry on going higher or will it carry on retracing further?
Starhub’s trend is current uptrend as it had broke out from its sideway resistance of 2.39 level. It recently had formed a higher high and is retracing for a possible formation of higher low. Based on current price level, it is trading closely to the resistance turn support level of 2.39. And based on the candlestick, it is start to form a formation that is similar to bullish harami. Looking at the indicators, it has yet to show any bullish indication. Hence, Starhub might retrace slightly further to test 2.39 support level.
If Starhub is to confirm the support and forms a higher low level, it might surge to the immediate resistance of 2.54 level before it breaks for a higher level. The possible higher high level could be at 2.65 resistance level. Hence, the upside potential is pretty significant. But if Starhub fails to hold the support of 2.39 level, it could retrace to 2.31 for the next support.
In conclusion, Starhub could continue its uptrend movement as long as a bullish signal is formed at the support level of 2.39. Its upside potential is significantly good comparing to its downside risk. Hence, one should be watching out for a confirmation of the bullish signal if it forms.

What to watch out for this week:
1) Formation of a bullish signal
2) Breaking of 2.39

Trading strategy to adapt right now:
- Long when there is a formation of bullish signal
- Avoid if 2.39 support breaks as the trend might change to sideway

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