Executive Summary

After months of steady gains, Sheng Siong has quietly broken past a critical resistance at $2.00, catching the attention of traders looking for strong, defensive plays in the Singapore market. As one of the island’s largest supermarket chains, Sheng Siong has thrived on resilient consumer demand, but now, it’s not just groceries flying off the shelves, it’s the stock itself gaining momentum.

Using my One Good Trend strategy and 1GT (Pro) Indicator, I’ve uncovered multiple bullish signals that are still in play, pointing to potential upside in the short term. Could Sheng Siong push toward $2.20… or even $2.50? In this article, I’ll break down the key levels, share my trading plan, and reveal how you can ride this trend with lower capital outlay through warrants. Don’t miss this opportunity, read on to find out why this setup could lead to one of the most watched moves in the Singapore market this quarter.

Sheng Siong Group Ltd (SGX: OV8) operates one of Singapore's largest supermarket chains, catering to mass-market consumers with fresh groceries, household essentials, and budget-friendly products across the island.

Looking at the longer-term trend, the 100-day moving average (red line) is above the 200-day moving average (blue line), and both are pointing upward.

This indicates that the long-term trend remains bullish, with the uptrend continuing from the lows seen last year.

In the short term, the 20-day moving average (green line) is also sloping up, and prices are trading above it.

This reflects strength in the current short-term momentum, as Sheng Siong continues to ride the recent rally.

There was a recent 1GT Bullish signal from my 1GT (Pro) Indicator triggered on 17 April 2025 around $1.62, followed by another few 1GT Bullish signals in June 2025 at about $1.86.

These bullish signals are still playing out, confirming the ongoing uptrend with buyers remaining in control for now.

Support for this stock would be at the $2.00 level, where we have seen the recent breakout happen.

This area can serve as a near-term floor for prices to hold.

On the upside, the next resistance to watch is at $2.20, where prices may face some profit-taking if it gets near that level.

A conservative approach would be to accumulate on dips near the $2.00 support zone, with a stop-loss placed just below this level to manage risk.

An aggressive approach would be to ride the momentum now as the 1GT Bullish signal is still in play, targeting the $2.20 resistance as the next upside level.

Any break of 2.20 near term resistance can see targets potentially raised to $2.50 and that is where further long positions can be taken.

As long as Sheng Siong stays above $2.00 - $2.10, the trend remains healthy, and there could be more upside in the short term.

So, how does one take a position in Sheng Siong to ride the uptrend further with lower initial capital outlay?

Investors who wish to be exposed to potential upside moves in Sheng Siong shares can consider using a Sheng Siong call warrants to magnify the share price return using lesser capital and without the risk of margin calls.

There is only one Sheng Siong call warrant KCKW listed in the market. There are no put warrants.

Macquarie has a tool known as the Warrant Calculator to help investors estimate their returns with this warrants versus Sheng Siong shares, as well as the maximum holding period if one were to purchase the warrant.

To use this tool, one needs to have a target entry, exit/cut loss view on the underlying share.

Assuming an investor wants to get into a bullish position in Sheng Siong only at the $2.00 support level, they can type in $2.00 under the “Underlying price entry” field sitting below the “target entry variables” column.

Assuming this happens some time next week say on 28 July 2025, the estimated price of the warrant will be $0.011.

Warrant Calculator: type in your stock entry level and adjust the date to a future entry day

To find out how the warrant will perform if Sheng Siong moved to the near-term resistance i.e. your target exit level in the stock, type in $2.20 in the “Underlying price target” underneath the “Target exit variables” column on the right.

Move the date slider to observe the warrant price change.

Assuming Sheng Siong moves 10% higher from $2 to $2.20 in 32 days, the warrant will increase about 5.5 times more, that is, estimated gain of 54.5% from $0.011 to $0.017 by the target exit date and assuming all factors remaining unchanged.

Warrant calculator: warrant produces 54.5% gains with 32 days holding period given $2.20 price target Increase

Increase the date slider to a further date where you no longer see magnified gains in the warrant versus the underlying to work out the maximum holding period with this warrant given your price exit target of $2.20.

In this case, 98 days from your date of entry will no longer generate a magnified price gain (18.2%) in the warrant versus the share price gain of 10%, and is hence your maximum holding period in this warrant.

Warrant calculator: warrant no longer produces magnified gains with 98 days holding period given $2.20 price target

For those who wish to hold onto the warrant for longer, the stock needs to move further in your favour e.g. $2.50.

In which case, with a 98 day holding period, the warrant will still generate magnified gains of approximately 181.8%, 7 times more than Sheng Siong’s 25% gain.

Even if one holds the warrant until the last trading date of 22 December 2025, the warrant will generate a potential gain of 163.6% versus the share price gain of 25% (assuming all factors remaining unchanged)

Warrant calculator: warrant produces 163.6% gains with 147 days holding period given $2.50 price target

Investors should note that leverage works both ways.

Whilst warrants can be used to magnified one’s exposure and potential gains from favorable price moves in the underlying shares, losses can also be magnified when the price moves against the investor.

The sharing on how one can take a position using warrants has been contributed by Macquarie Warrants Singapore 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

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Look forward to see you on the inside!

- Joey

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