Genting in for a rebound after massive sell-off in March

Thanks to a horde of bargain hunters.

Genting may finally be in for a rebound in the next few days after suffering an intense sell-off in March.

According to Nicholas Teo of CMC Markets, Genting’s share price crashed to fresh four-year lows last month on back of concerns that its ballooning receivables may lead to considerable write offs.

Since the beginning of April, though, Genting’s shares have gained some 10% to $1.025, thanks mostly to bargain hunters taking a stab at the group’s low prices.

“We see several gaps that were formed in the volatility over this past month. One sits between S$1.045 and S$0.995 and the other between S$0.975 and S$0.985. This looks somewhat like an island reversal; one which has often proven to be a strong reversal signal. This may offer the stock support for a further bounce from here. S$1.05 remains a key resistance level that has to be broken convincingly before this can be confirmed. If the stock fails to punch through the S$1.05 level, however, we may see it fall back close the S$0.975 gap instead,” Teo stated.