SIA: No catalyst for demand

2020年6月1日

https://www.tradingview.com/chart/vAnVki8y/

SIA latest headlines: 1st June 20'
- Majority of SIA directors chooses to let their rights mandatory convertible bonds (MCBs) lapse without exercising them, despite proposing the MCB rights issuance to shareholders as part of larger cash call in April.
- SIA to reinstate certain flights in June & July, subject to regulatory approvals. Reinstated services include: Adelaide, Amsterdam, Auckland, Barcelona, Brisbane, Cebu, Copenhagen, Hong Kong, Medan, Melbourne and Osaka


Daily Chart:
Fib Retracement: Resistance at 3.96 (38.2%) and 4.08 (50%) levels remains to be tested
Moving Averages: Price close at 3.88 above 14 Day SMA, against weekly price advance of approx 7% on light volume. (Bearish)
CMF: - 0.21 as of 1st June. No major catalyst likely for demand fill anytime soon. (Bearish)

Weekly Chart:
MACD: MACD and signal lines at around -0.60, well below 0 break line. (Bearish)
RSI: 28.80 as of 1 June 20'. Close to oversold territory (Value)
Money Flow Index: 33.39. Neutral with downward bias to oversell.

Personal take:
Best to steer clear of this counter for the near future, no prizes to infer lack of institutional demand as per SIA director's actions as a proxy.
Possible value when overselling enters it's final stages. 3.96 and 4.08 per share as resistance levels to watch going forward.

Hope SIA will be able to take to the skies soon. Miss travelling!