SIA Engineering, Wing Tai technically oversold: DBS
AIRCRAFT maintenance and repair company SIA Engineering is technically oversold, a DBS trading service noted in an alert on Tuesday morning. This was also the case for property and retail firm Wing Tai Holdings.
In both cases, their relative strength index (RSI) is below 30. The RSI is a technical analysis indicator that measures historical gains or losses within a rolling time period. Values below 30 suggest an oversold situation, while values above 70 suggest an overbought situation. However, each indicator cannot be looked at in isolation.
"It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace," DBS said.
SIA Engineering closed at S$4.08 on Tuesday. It had fallen from S$4.80 earlier in the month after announcing poor results. "The downside prevails as long as S$4.26 is resistance", DBS said.
For Wing Tai, DBS said the downside prevails as long as S$1.71 is resistance.
Wing Tai closed at S$1.67 on Monday. It was partially affected by the residential market downturn in Singapore, and is trading at less than half its book value of S$3.85 as at Sept 30.
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