Macro backdrop
Airline stocks have reacted to the recent escalation of Iran–Israel conflict, as disruptions to Middle East airspace and flight routes have affected travel plans and operating conditions.
In $SIA(C6L.SI)’s case, price pulled back sharply but has since found support around the $6.64 area — a recent spike low that reflects the initial market reaction.
Technical structure
Prior to the decline, $SIA(C6L.SI) had been forming a cup-and-handle pattern. The “cup” represents a rounded base over time, followed by a shorter consolidation phase known as the “handle.” The recent sell-off brought price back toward the neckline area of this formation — effectively a retest of a previous breakout level.
The base has developed over a relatively extended period- about 3 years. Longer base formations are generally viewed as more structurally significant, as they reflect prolonged consolidation. If resolved to the upside, they may support a more sustained move, subject to external conditions.
Key levels to watch
$6.64: Recent spike low, likely driven by event-related volatility.
If this level holds, it suggests that the neckline retest is being defended and the broader structure remains intact.
If $6.64 breaks, the next support to monitor is around $6.50. A move below these levels would weaken the cup-and-handle structure and increase downside risk toward earlier consolidation zones.
$7.20: Key resistance level near recent highs.
If price breaks and sustains above $7.20, it may open up further room for upside movement.
If price fails to break above $7.20, it would continue to act as a strong resistance ceiling.
Using Structured Warrants for Short-Term Trading
If the price pullback towards the possible supports of $6.64 and shows bullish price actions, call warrants ($SIA(C6L.SI) MB eCW260630 (V1LW)) $SIA MB eCW260630(V1LW.SI) (https://warrants.com.sg/tools/livematrix/V1LW) may be relevant for expressing a bullish short-term view.
Structured warrants are short-term trading instruments that magnify both gains and losses; their value is affected by the underlying price, volatility, and time to expiry.
Note: The featured call warrant is one of the warrants quoted on tight spreads and high liquidity. There is no put warrant for SIA at the moment.
DISCLAIMER
Information found in Binni Ong commentary is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. She is providing education and training, and is not regulated by the Monetary Authority of Singapore or any financial regulatory body.
This commentary piece is sponsored by Macquarie Warrants Singapore. The views expressed by Binni Ong do not represent the views of Macquarie Group, nor its affiliates.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Investment products including warrants are subject to significant investment risks, including the possible loss of the principal amount invested.
Where past performance is referred to, it is not indicative of future performance. Examples quoted in this presentation are for illustration purposes only and do not represent any investment views or strategies. Advice should be sought from a financial adviser regarding the suitability of the investment product before you commit to invest in it.
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