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StarHub: Will It Have A Strong Rebound?
Trend Spotting | 21 May 2013
By: Robin Han
Articles (102) Profile

The telecommunication sector has been performing strongly for a few months now. It was also the sector that help the Straits Times Index to achieve new highs for the past few months.

However, this trend took a turn recently. StarHub dropped quite severely recently. It has been dropping for the past five trading days. The reason why this stock is worth looking at is because usually a strong stock does not just turn weak and trend downwards. Chances are, they will at least have a strong rebound before the downtrend.

We can see that StarHub has not had any strong rebound yet since the pull-back. Besides, it already dropped a lot from the recent high at $4.75 to the important support at around $4.29. It is likely to have rebound in the next few days. One may consider buying on a pull-back to catch the rebound.

The stop loss will be a few ticks below the support. But one thing investors need to take note is that the stock has dropped too much, a uptrend is not likely to resume soon. The strategy is just to catch a rebound and the stock may NOT hold for mid-term to long-term.

 Daily Chart Of StarHub

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.


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