As expected a rebound was witnessed on last Friday - 22nd January with prices went up slightly higher for the 3 local Bank counters.
Last Friday Dow closes high with +280 points,come Monday may see STI heading higher so will these 3 Bank counters.Any strOng rebound will be a good options to take profit or exit to minimize loss. Be extra cautious.
Banks - 21st January 2016
DBS is heavily shorted down as reflected from the chart from the high of $16.80 from 31st Dec 2015 to a low of $13.77 on 21st January 2016. The selling is overdone. Both MACD & RSI are also trending towards the oversold territories . A strong rebound is in the cart. Short term it may see it prices moving up towards $15.00 then $15.50.
OCBC - Same situation is also happening for OCBC as reflected on the chart which was heavily shorted down from the high of $8.87 on 31st Dec 2015 to a low of $7.57 on 21st January 2016.
Both MACD & RSI are driven into oversold situation. Short term wise a Technical rebound is imminent.Hopefully the rebound is strong enough to send the price up towards $8.00 then $8.50.
UOB - Almost the identical chart pattern is also happening for UOB. The price was heavily shorted down from the high of $19.70 from 31st Dec 2015 to a low of $17.07 on 21st January 2016.
Short term wise a technical rebound could be happening any moment. Hopefully this rebound may propel the price to head higher towards 18.50 then $19.00.
Banks - 10th January 2016
All the local 3 banking stocks are showing the same downtrend patterns as reflected on the charts.
The current prices for all these banking stock counters are trading below 14SMA & 25SMA lines which is generally rather bearish.
With market sentiment likely to go lower as last Friday US markets
Dow closes down triple digits as stocks end one of worst first weeks ever.
Local market may likely to see a selling down situation.
UOB may head lower to test the next support level at $18.21.
Once $18.21 has been taken out then it may continue to drift lower to $18.00 soon.
Update - Today UOB touched the low of $18.04 on 12th January with super high volume. This is rather bearish. Short term may continue to go lower towards $17.00 then in extension to $16.50.
Update - Today UOB touched the low of $18.04 on 12th January with super high volume. This is rather bearish. Short term may continue to go lower towards $17.00 then in extension to $16.50.
Similarly for DBS, last Friday closing price of $15.72 may not hold long as this was more or less a technical rebounce that may eventually see the price head lower to test $15.20 then $15.00.
Update - DBS also went down to touch $15.29 on 12th January. Volume is quite high which is rather bearish. Short term may trend lower towards $14.50 then in extension to $14.00.
Update - DBS also went down to touch $15.29 on 12th January. Volume is quite high which is rather bearish. Short term may trend lower towards $14.50 then in extension to $14.00.
OCBC also experiencing the same downtrend situation like the other 2 banks.
last Friday we witnessed a bounce-off from the low of $8.30 and close higher end of the day at $8.40.
Volume is quite high with 7.657m changing hand.
With the current STI index testing 2700 level it doesn't bode well for the stock market going forward. Bear is in the upper hand now.
OCBC may continue to trend lower to test the next support at $8.00.
It is better to exercise due diligence when trading of stock counters at current market condition which is more likely to head further South.
Shortlister are taking advantage of the current market trend to trade in their favor.
Kindly trade with extra cautious. It is better to stay sideline and wait for the right opportunity to make your entry decision when the market condition improve.
(trade/invest base on your own decision)
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