OCBC bank has an interesting set up. It is part of the STI component and the banks caused a drag to the STI index today. Of course not forgetting the worry that comes from North Korea testing its nuclear capability.
OCBC bank had a nice uptrend since the start of the year. It had a gap up just on last Thursday but got slammed down this morning and even crossed below its 50MA which hasn’t happen since April.
It is now currently supported by the horizontal support at 10.92. If it breaks below and stays below that we might see more downside. Our entry might be below 10.92 with a stop loss either at 11.04 or 11.15 which is the downtrend resistance.
We would be using Poems CFD to short and if you would like to find out more about CFD feel free to Contact Us and we’ll be glad to assist you in understanding CFD.