SingTel -- 4th Aug 08

SingTel closed $3.58 on 1st Aug 08 after hitting an intra-day high of $3.63. Current price is sitting at the support level of $3.56, the 61.8% Fibonacci retracement level. Technically, MACD is showing positive sign as MACD signal is moving up towards the positive region while MACD histogram still maintain in the positive region. RSI is above the 50% level indicating some strength in maintaining at the current support level of $3.56. Stochastic signal is moving towards the 80% level and show no sign of price retreating. Parabolic SAR still in the buy region. Immediate resistance would be the 50d EMA level of $3.61, after which would be the 50% Fibonacci retracement level of $3.69; also the price level where the 100d and 200d EMA lies. However, there was a gap created between 29th - 30th Jul 08 and in order to cover this gap, SingTel price will need to retreat to $3.53 and below to fully cover up the gap. If the gap is completed and price is able to rebound back to the $3.56 support level, the downside will be limited. Otherwise, the downside would be to re-test the $3.40 - $3.44 level. SingTel will be XD on 6th Aug 08 and with a dividend of 6.9 cent/share and coupled with its earning report due on 12th Aug 08, these could potentially provide a good support at the $3.56 level.