From Boring to Bullish: How SATS is Shaping Up for a Potential Rally

Discover the key signals indicating a potential breakout for SATS and how you can capitalize on the next big move

After months of sideways movement and a lackluster performance, SATS is showing signs of life. With a key breakout above the critical $3.00 resistance level and bullish reversal patterns emerging, this stock could be on the verge of a significant rally.

Discover the key support and resistance levels, the trends pointing up, and why SATS might just be the comeback story of 2024. Could this be the moment savvy investors have been waiting for with near term target to 4.40??

Dive into our in-depth technical analysis to uncover where SATS might head next and how to position yourself for the potential upside.

SATS was one of the bullish Singapore stocks that came back into my watchlist in July 2024 just 2 months back.

Before that, it has been in a sideways consolidation from October 2022 and the range was clearly from 2.40 to 3.00.

It was rather boring and directionless as it traded up and down with the longer-term trend indicators flat.

3.00 was a critical resistance where we traded near it about 6 times before a retracement each time so any firm move above this level can be meaningful.

Finally, on 9th July 2024, we saw some bullish price actions with an attempt to break this key 3.00 resistance. Target was raised to 3.50.

With prices holding above 3.00, it was the potential start of a longer-term reversal.

In early August, we pushed higher towards 3.30 but sold off again to the new 3.00 support as the market weakened on the back of recession fears and the unwinding of the Yen carry trade.

That was where some bullish reversal candles were spotted, and a rebound seen to above our 3.50 target now.

Over the past 1 month, the longer-term trend has also formed more firmly with the 100-day moving average (Red line) and 200-day moving average (Blue line) both pointing up.

The short-term trend has also turned up for now with prices holding above 3.50.

As long as 3.50 is a support for SATS, a potential rebound towards 4.40 – 4.50 seems likely. These targets are where we saw heavy selling in 2021 and 2022.

Entries can be taken near 3.50 – 3.60 where some bargain hunting has appeared, with a stop loss below 3.50 just to protect the downside risk.

So, how does one take a position in SATS whereby you are able to reap more potential return to ride the reversal further?

Well, one can buy the SATS structured warrant listed on the SGX to profit from more upside.

It allows you to multiply your returns with a smaller amount of capital.

Using Macquarie’s Warrant Selector tool, I input my target price of $4.40, which is 21% higher from the current $3.63 (as of 3 September) to see how the Macquarie featured* SATS call warrant ZNPW will perform with time.

*featured warrants refer to warrants that are trading on tight bid and ask spreads

If SATS rally 21.2% higher in a week’s time, the call warrant will increase 123% from the current SGD 0.022 to SGD 0.049. If SATS took the next 3 months to head 21.2% higher, the SATS call warrant will now be up less i.e. +86.4% due to time decay but still four times more than SATS shares.

Clearly, the quicker SATS shares take to get to my target level, the more gearing and profits I will enjoy via this call warrant.

To find out the maximum period I can hold on to the SATS warrant with my target level of $4.40, , I can use the Warrant Calculator tool.

Keeping the target entry variable column on the left unchanged, I will input $4.40 into the target exit underlying price target, and move the date slider to the furthest date before the warrant price only increases slightly more than the share price.

In this case, on 14 February 2025 – five months from now – the SATS call warrant will only increase 27.3% from SGD 0.022 to SGD 0.028, only marginally more than SATS’ +21.2% gain.

5 months is thus my maximum holding period using this warrant.

The sharing on how one can take a position using warrants has been contributed by Macquarie warrants who is the issuer of these warrants listed on SGX.

About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

More about Joey here

Hope you have found the above content useful 😃 

If you have yet to attend my FREE webinar on how I select HIGH PROBABILITY WINNING STOCKS, you can check it out here!

Look forward to see you on the inside!

- Joey

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