Executive Summary

As capital flows back into Singapore’s stock market and SGX reports its strongest profits in 25 years, investor attention is shifting toward undervalued blue-chip names showing technical strength and Singtel is right at the top of that list. This telco giant has flashed 3 consecutive bullish 1GT signals this year, with the latest breakout above $4.30 confirming the return of strong upward momentum.

In this article, I share my latest analysis using the One Good Trend (1GT) strategy to uncover what’s driving this move, which key price levels matter now, and how traders can use Daily Leverage Certificates (DLCs) to ride the trend with higher potential returns. With no exit signals in sight, this move may still be in its early innings.

1. Singtel Telecommunications Limited (Z74.SI)

Singtel Telecommunications Limited (Z74.SI) is one of Asia’s leading telecommunications companies, offering mobile, broadband, and digital solutions across Singapore and key regional markets including Australia, India, and Indonesia. 

The group also has significant exposure to the regional digital infrastructure and data center business, making it a core component of the SGX blue-chip space.

This stock has caught the attention of traders recently as it builds on a steady uptrend that has developed over the past several months. 

After consolidating between $3.90 and $4.10 over the past 2 - 3 months, it has now broken out above a new higher resistance level at $4.30, with the most recent bullish 1GT signal still playing out.

The longer-term trend remains intact, with the 100-day moving average (red line) sloping upwards and staying comfortably above the 200-day moving average (blue line). 

The short-term 20-day moving average (green line) has also turned upward again, reflecting short-term strength and renewed momentum in the current breakout move.

Notably, we have seen 3 consecutive bullish 1GT signals this year still playing out, with no exit signals yet.

The latest two signals appeared in early July and August around the $3.90 support level, offering strong confirmation that buyers were defending that zone aggressively. 

Since then, price has pushed through $4.10 and $4.30 resistance, with the $4.30 level now acting as the immediate support to watch.

As long as the new higher support holds, the uptrend remains firmly intact. 

The current breakout has opened the door to the next potential upside target at $4.50. 

This level also represents a psychological round number and may see some profit-taking. 

If momentum continues and new bullish signals appear, the move could extend further beyond this zone and the target can be raised higher.

Any short-term pullbacks that remain above $4.30 may offer re-entry opportunities for those looking to ride the trend further.

So, how does one take a position in Singtel whereby you are able to reap more potential return to ride either the downside or upside further?

Those keen to ride on the short-term upward momentum in Singtel shares can consider using Daily Leverage Certificates (DLCs) traded on SGX to leverage on that move.

The Singtel DLCs are designed to provide a fixed 5 times leverage performance on the underlying stock’s daily movement.

This means that for every 1% move in Singtel’s share price, the 5x Long DLC will move approximately 5%, and likewise for the 5x Short DLC in the opposite direction, before fees and costs.

For traders who are bullish, they can consider the 5x Long DLC on Singtel (DRVW).

For those who are bearish or expecting a retracement, the 5x Short DLC (UVHW) could be used instead.

Singapore Stock DLCs

The Singapore Stock DLCs are designed to provide a fixed no. of times leverage performance on the underlying Singapore stock’s daily movement, based on a market-to-market close basis on the SGX. 

Using Singtel DLCs as an example, this means that for each 1% move in the underlying stock price, the respective DLC will move approximately 5% in the corresponding direction, before fees and costs.

• If the Singtel stock rises by 2%, the 5x Long DLC will rise by 10%, and the 5x Short DLC will fall by 10%, before overnight costs and fees.
  

• If the Singtel stock falls by 2%, the 5x Short DLC will rise by 10%, and the 5x Long DLC will fall by 10%, before overnight costs and fees.

These DLCs are listed and traded on the SGX just like any other stock from 9:00AM to 5:00PM, and can be accessed through your regular brokerage account. 

Visit https://dlc.socgen.com/en/home to find out more. 

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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This article was created in partnership with Societe Generale (Singapore branch). This advertisement has not been reviewed by the Monetary Authority of Singapore. The views expressed under this article represent the personal and independent views of the author and do not constitute investment advice. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see http://www.dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.