DBS – [ Nice Rebound From End Sept , Could The 10 Year Yield Curve Give Clues On Where It’s Heading?]
Chart Source: Poemsview 26th Oct 2020
DBS saw a nice rebound of about 8% since we posted near end Sept. Back then we were anticipating some rebound from our three local banks which we’re glad played out. DBS having the biggest percentage gain of all the three. It managed to breakout from our initial rebound target of $20.80 and head north towards the 200ema.
From a technical point of view the 200ema is a considered the long term resistance and is also a strong one. The last time DBS tested it was back in June but couldn’t really sustain holding above it. So now the real test is breaking above it and staying above it for about 2-3 days at least in order to see some nice upside. A rest around here would be what we would like, storing some strength for the road ahead would be our preference. IF DBS breaks above the 200ema, our next possible target might be around $22.2o area.
The 10 year yield rate is seeing a steady increase for the past week, taking it a 4 months high. This bond tends to signal investor confidence too. When confidence is high, prices for the 10-year drops and yield rises. This is because investors feel they can find higher returning investments elsewhere and do not feel they need to play it safe. This is just a simple explanation on it as there are many factors surrounding it too.
Watching DBS and the other two banks closely. Are you watching them too? Let us know your thoughts on it!
We hope you managed to pick up some points on the banks when we posted last month!