STI surged past 3000 and might be heading to 3050 area before being resisted. With that banks also might have a surge up too. We’re looking at DBS. It’s currently close to $18 a round number resistance. If market continue it runs $18 could be taken out and DBS might retest its previous high of $18.40
We would consider entry at 18.01 with a stop loss of $17.70
Yours
Humbly
DBS, what will the impending rate hike do to the price? Well, on theory an increase in interest rates would see an increase in interest yield on their loans but business might find it more costly to borrow. Only question is much how then will it hurt. It’s going to be a long drawn debate but lets see the chart for clues.
DBS currently supported by the 200ma and resisted by the 50ma . If it closes below the 200ma we could see it head down to test that uptrend line of about $15 and if it stays above the 50ma then it might test the uptrend line of $15.55. With the current sentiments we might see it test $15.
Yours
Humbly
DBS, slammed down today due to exposure of swiber (http://www.straitstimes.com/business/dbs-exposure-to-swiber-group-at-700-million-expects-to-recover-half)
This might just be the start has it might have other exposure to the O&G sector and debts that will be hard to recover. We’re using the 200ma as the first support at 15.67 and if that breaks then eventual target to 15. Entry to short at 15.8 with a stop loss at 16 or 16.15.
OCBC currently at its horizontal suppport of 8.71 it hit there and rebound. But if this breaks then we might see more downside towards its 200ma at 8.63 then 8.55. Our short entry would be 8.7 with a stop loss at 8.90. Of course we don’t naked short, we use our CFD DMA to short. The risk reward for now could be 1-1
Yours
Humbly
STI had some rebound over the past week but we noticed that the banks didn’t rebound as strongly in fact it was quite weak and started heading down.
With that we see that if the horizontal support of $13.45 is broken we might see DBS heading down to a target of $13.10 first which we have to zoom out to a 15 year time frame to see. The vol for today has increased which might signal some downside pressure.
So what we’ll do now is to wait and see if the support of $13.45 is broken before we initiate a short position. A stop loss of $13.67 can be place for this trade. Remember, as a trader or even investor we have to practice patience. As we all know patience is a virtue. =) Blessed day ahead
Yours
Humbly
