Since my last post, I have been monitoring this counter. Just early this week, the opportunity came with the strong support at $3.34 formed. From the chart, it has tested this price range twice, thus forming a strong support. This counter has corrected for sometime, and has finally found strong support at this level.
If it breaks this support level, then we will be looking at the next level of support. Do not rush in as there is also a strong resistance at around $3.65 range. (Vested)
SingTel share price started it's downtrend correction from mid 2015, when the news on the incoming 4th Telco were finally firmed. After two and half years of downward trend, recently, I had friends who came to me and told me that the share price is attractive now at about 5% dividend yield. For my own education, I decided to take a quick look.
Avg 7 years of dividends is 0.19c
15 times = $2.85
18 times = $3.42
23 times = $4.37
At today's closing price of $3.35, do you think it's attractive.
It has broken the key support level, and probability of it hitting at $2.9 is high as the chart is weak and there is a strong resistance above the current price.
What do you think, wait or cheong to buy?