Very long time common readers of my blogs know that I’ve been accumulating shares of DBS, OCBC and UOB.
The final time I did this on a comparatively important scale was in October 2022.
Over a couple of days, I elevated my investments in OCBC by 11% and UOB by 19%.
Then, the native lenders’ inventory costs rose and I ceased accumulation.
I wish to assume that I used to be not affected by an anchoring impact as I merely refused to pay greater costs to extend my stakes.
I simply did not assume I’d be getting as a lot worth for cash at a lot greater costs.
I used to be including to my funding in OCBC at nearly ebook worth and paying a 5% or so premium to UOB’s ebook worth in October 2022.
With the shares promoting off, it now appears that I may need an opportunity to build up at these ranges once more.
It is a real looking expectation as buying and selling quantity has expanded considerably as bearish sentiment took maintain.
After all, seasoned merchants know that inventory costs might merely drift decrease on low quantity however when there may be excessive quantity on down days, it provides gasoline to the hearth.
On this weblog, I’ll discuss to myself about the place I believe the inventory costs of DBS, OCBC and UOB could be heading.
As I do that, I remind myself that technical evaluation is about chance and never certainty.
I’ll begin with what I really feel is the weakest of the three, UOB.
Of the three banks, UOB is the one one to finish the day with a purple candle.
UOB’s inventory worth began the day at $28.05 however closed at $27.84.
The bears are robust right here and the flat 200 days transferring common at $28.47 will in all probability be the resistance degree to observe for now.
The MFI has entered oversold territory which could convey out some discount hunters however with momentum deep in unfavourable territory, it’s unlikely that UOB would break resistance offered by the 200 days transferring common.
I see the subsequent important assist at round $26.90.
It is a many instances examined assist degree which was additionally the resistance degree within the month of October final yr.
I really feel that DBS’s inventory shares an analogous destiny to UOB’s nevertheless it ended the day with a inexperienced candle which is an indication that the promoting strain right here is best absorbed in comparison with UOB’s case.
DBS opened at $31.70 however closed greater at $32.33.
Just like UOB, the 200 days transferring common at $33.15, beforehand the assist, will now be the resistance to observe.
Identical to UOB, DBS is now in oversold territory which might end in some discount searching.
We might see the hole stuffed at $32.70 in such a case however with momentum deep in unfavourable territory, it’s unlikely that resistance offered by the 200 days transferring common might be overcome.
We might probably see a retracement to $30.00 or so a share which was the assist degree seen within the months of June and July final yr.
That is if the bearish sentiment continues to dominate.
So, that leaves us with OCBC which has exhibited probably the most resilience.
Despite the fact that the buying and selling quantity was a lot greater than the day earlier than, a inexperienced spinning high, a reversal sign shaped.
Now, a single candle reversal sign is not very robust and it might very nicely fail.
Identical to DBS and UOB, OCBC is now buying and selling at beneath its 200 days transferring common.
In contrast to UOB’s which has flatlined, OCBC’s 200 days transferring common, at the moment at $12.14, remains to be rising though gently.
The optimistic divergence in OCBC’s chart which I discussed in current blogs on our native banks’ worth motion remains to be seen.
If I had been to affix the the bottom factors in July and October final yr, we will see that OCBC’s uptrend remains to be intact.
The trendline might present quick assist which appears to be at $11.80 to $11.90 this week.
If that breaks, then, the uptrend is damaged and we might see a retracement to varied helps at $11.70, $11.50 after which $11.30.
These worth ranges have acted as essential helps and resistance many instances earlier than.
Relying on which facet of the fence we’re on, the bear generally is a buddy or a foe.
If we now have been doing the suitable issues, the bear is our buddy.
UPDATE:
Greater than 50% of tickets for “Night with AK and buddies 2023” have been bought. As anticipated, the tickets are promoting at a slower tempo this time.
Night with AK and buddies 2023. Ticketing.
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Purchase OCBC. DBS and UOB subsequent?