Chart Review – SpeedCast International Limited (SDA)

SpeedCast International Limited provides network and satellite communications services worldwide. It designs, deploys, operates, and maintains networks, including installation and configuration of equipment; and offers value added services, such as user applications, network optimization, and networking monitoring and management. The company also sells equipment, including VSAT terminals that send and receive transmitted data, modems, router, and other types of equipment related to the provisioning of value-added services; and provides wholesale VoIP services to telecom customers. In addition, it offers technical consultancy services, maritime broadband services, high speed broadband satellite services, satellite broadband Internet services, and digital media services. The company was incorporated in 2014 and is headquartered in Causeway Bay, Hong Kong.

This stock was reviewed in “Ten Bags Full”, a quality website which is a source of information for retail investors. I have  chosen it for a chart review, to consider relevant technical considerations. This does not imply any endorsement or recommendation of the stock. Readers interested in investing in  this stock should seek professional advice suited to their needs from their own financial adviser or broker.

Technical Analysis observations

  • Speedcast floated 12/08/2014 at $2 and declined during the rest of the year to support at $1.70.
  • After forming a double bottom pattern, the share-price started to rebound.
  • The optimum timing for investment would have been between Jan 27 and Feb 26, 2015 when first the short-term and then the medium-term multiple moving averages crossed-over and the the stock-price entered an up-trend.
  • The momentum of the increase slowed as the share-price neared $3, and stalled at a high of $2.99 where a dragon-fly Doji was formed.
  • The last closing price was at $2.88, but it formed a bearish engulfing pattern with the previous candlestick suggesting that there could be further falls this coming week.
  • The short-term moving averages have converged, and plateaued giving traders a signal to close their long positions.
  • The medium-term averages remain upwardly slanted and are still well separated suggesting that there is no need yet for long-term investors to sell, unless they wish to perhaps take profit.
  • For those who do not hold stock but may be looking to do so and to optimize their entry price, the Fibonacci levels suggest that there may be a retracement to $2.70 or even to $2.50 before rebounding. Support should always be established before entry.
On the rise

On the rise

Categories: Chart Analyses

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