WAR!

In case you haven't heard, there's a war going on, and it's happening right here in Singapore! Our three telecommunication companies have decided to let loose a barrage of discounts on mobile data to subscribers. Singtel and Starhub have bettered their offers at least once each during this price war.

Usually businesses would prefer to avoid price wars and instead focus on adding value to their customers. But I suppose they came to a realization that mobile data was THE value-adding proposition to subscribers of their mobile plans in the first place.

I'm not complaining honestly, I re-contracted my M1 line over the weekend and added 2GB of data to my existing plan for just $5.90 a month. Although, I rarely ever actually use up my 3GB of data, but I thought I would give it a shot and see how much data I could use. Watching charts and trading through the phone hardly takes up any data at all. Maybe if I watched more youtube… Or video called everyone instead of just voice calling! Anyway, I'll figure out how to use more data. Another perk is that it's not on contract, so you can cancel the additional data at any time. That's as good as a risk free trade in my opinion.

All three telcos have pretty good offerings, Singtel's is now offering a very customizable do-it-yourself plan, while Starhub's data offer is much cheaper than the rest, but it lasts only until the end of the month. We'll see if there are any more shots fired or if the war has ended with last week's offers.

Charts

For now let's take a peek at their charts and see if this is a catalyst for any buying opportunity.

All 3 have been in a downtrend since middle of last year. This is in-line with the broad market's performance. While the STI seems to have found a bottom in February, it is currently at an area of resistance, around this 2800-2850 level.

The charts for all three telcos don't show much buying opportunity. All are held by some resistance. Only Starhub actually broke through but it has since made a spectacular drop again. IMHO, I think that’s a rather strong indication of weakness. Singtel looks to be the stronger of the remaining two.
Take a closer look at the charts below to see what I mean.

Singtel

Starhub

M1

Conclusion:

The result is clear, the best place to put your money right at this moment, would be to re-contract your mobile line with your favourite mobile provider and GET MORE DATA!

Best risk/reward trade in the market right now folks. =)

Good trading everyone!

The post The Telco Wars! Which Horse Should You Be Betting On? appeared first on The Systematic Trader | Trading Courses | Collin Seow.