Singapore Airlines
Published on November 20, 2020
In every crisis, there is an opportunity too!
Someone…
Overview
This pandemic had a brutal impact on travel and tourism industry and airlines were the worst hit. The structure on the charts of SGX:SIA(C6L) now suggests that it is providing a once in a lifetime opportunity to invest in this stock. We talked about this first on Oct 6th 2020 when we revised the prospects of this from a long term perspective.
Perspective Matters: From a long term perspective, accumulating SIA at these levels is not a bad idea as: Q. Is my capital safe? A: Of course, this is SIA, one of the jewel of Singapore and is backed by Gov. of Singapore. Q. Will I get stuck for too long? A: It doesn't appear to be the case. Aviation industry will be the fastest to recover and specially SIA is often said as " Lungs of Singapore " Q. Any dividends? A: It's known to pay dividends and yield will be amazing at such prices. Money in Singapore bank will yield less than 0.5% interest anyways. So why not put it work and it will shoot up as soon as the industry improves.#SIA listed at #SGX is at interesting moment. This is a blue chip and available at such prices that should not be missed. I may sound crazy at these times but Perspective Matters! Defined by #MarketStructure. Classic Textbook cycle completed or getting completed soon!Watch out!! pic.twitter.com/zJfqzg0xjR
— Market Structure (@MMStructure) October 6, 2020
Fundamental Supports
Technical Structure
The way we see it is:
- It was in a bullish structure from year 1987 till early 2000
- Then started its consolidation period from year 2000 to 2007
- Since 2007, it was back bearish structure which was there until Aug'2020
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