Starhub closed $1.96 on 24th Mar 09 and probably is the only STI component index stocks that has not rebound following the recent market rallies. At present level, it is trading at its support level of around $1.94. Technical indicators are still in the oversold region and start to show sign of a "delay rebound". Stochastic signals cut up in the oversold region and DI+ just cut up the DI- signals in the ADX chart potentially showing a rebound in the short-term is around the corner. RSI just hit down at the oversold region and if RSI is able to show flattish/bottoming or cut up in the next few sessions, the chance of a rebound will be high. First level of resistance will be at the 50d EMA level of $2.02 followed by 100d EMA level at $2.09. Any breakdown at current support level will see it testing the $1.86 level. With the indicators showing sign of a rebound, the risk of a long position at current price level is lower than it potential rewards.
