Executive Summary

After nearly two years of sideways turbulence, Singapore Airlines (SIA) has finally broken free from a key resistance zone, sending a clear signal to traders that momentum may be shifting. Using my One Good Trend strategy and the 1GT (Pro) Indicator, I’ve identified a recent bullish signal that could mark the start of a new uptrend.

With the price action aligning above major moving averages and a clear support base forming, all eyes are now on whether this breakout can sustain altitude. If SIA continues to hold above this critical level, we could be witnessing the early stages of a much larger move. Traders shouldn’t miss this window.

Singapore Airlines Ltd (SGX: C6L) is showing renewed strength after staging a strong recovery off its recent lows around 6.00.As one of Asia’s leading full-service carriers, SIA benefits from resilient travel demand, a strong premium passenger base, and robust fundamentals.

And now, its chart is showing signs that the uptrend may be reigniting.

From the technical perspective using my One Good Trend strategy, we’ve seen two recent bullish signals (green) from my 1GT (Pro) Indicator.

The 1st bullish signal was triggered on 22 Apr 2025 after it bottomed, and another more recently on 19 May 2025 as the stock attempts to push above the key resistance at $7.00.

These signals indicate that bullish momentum is building, and both signals are still playing out at the time of writing.

The 20-day moving average (green line) has started to point upward again since early May as another confirmation of short-term strength.

Price is trading above all three major moving averages — the 20-day (green), 100-day (red), and 200-day (blue), confirming both the short-term and long-term trends are positive.

The previous resistance at $7.00 now turns into a key support level, providing a conservative entry zone if prices pull back.

This 7.00 price level is key as it has been trading below it for about 2 years, and finally a move above it is meaningful.

A more aggressive entry would be to ride this current breakout, targeting the $7.50 resistance level next.

A decisive move above $7.50 could potentially open the way for a further leg higher.

With bullish 1GT signals in place and strong price action above support, SIA is gaining altitude again and may be poised to retest its highs if this breakout holds.

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

Investors who wish to be exposed to potential upside moves in SIA shares can consider using warrants to replicate the exposure with less upfront capital as opposed to direct shareholding ownership.

Macquarie has a tool known as the Exposure Simulator to help investors do so.

For example, instead of buying 10,000 SIA shares at $7.00 for SGD 70,000 before fees, one can invest $14,826 in trending SIA call warrant XFHW (https://www.warrants.com.sg/tools/livematrix/XFHW) i.e. buy 234,200 units of this warrant to replicate a $70,000 shareholding exposure.

Figure 1: Using the Exposure Simulator tool to estimate a warrant investment amount

To see what the maximum holding period is for this warrant in order to replicate the shareholding exposure, type in the target profit-taking level e.g. $7.50 and Increase the number of days that you are holding this call warrant to observe the impact to the warrants’ Profit & Loss.

You’ll have to increase the days to the point where the positive gains from the warrant position equals to the absolute dollar gains from the shareholding position, to derive the maximum number of days you have to maintain this call position.

In this case, in order to replicate a shareholding of 10,000 units of SIA shares, the maximum number of days you can hold onto this call warrant based on your exit target price of $7.50 is 15 days, so that your absolute warrant gains will be similar to that on your shareholding position, assuming all other factors such as implied volatility remain constant.

Figure 2: Using the Exposure Simulator tool to estimate maximum holding period to replicate absolute price return from call warrant XFHW

You will notice that holding onto the warrant for longer than 15 days, say 58 days for example, will continue to generate % returns three times larger than that of the stock’s 7% return, but the absolute price return on the warrants will now be less compared to the shareholding position.

Figure 3: Using the Exposure Simulator tool to simulate warrant absolute and percentage returns

Investors may wish to note that using a SIA call warrant will only allow you to participate in the share price move, and is not equivalent to investing and holding the shares directly.

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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- Joey

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