Nobody can accuse AK of being lazy in the previous few days.
I’m feeling a bit drained from charts and following the information.
Been publishing blogs and producing movies too.
Considering of taking a couple of days off from running a blog however the OCD in me grabbed me.
For the sake of completeness, yet another weblog on DBS, OCBC and UOB.
Completeness?
Effectively, the TA I did yesterday which resulted in two blogs being revealed paid extra consideration to the bearish sentiment.
Right now, we noticed a pleasant bounce within the inventory costs of all three native lenders.
To not hold readers in suspense, a weblog to discover the upside risk will spherical issues off properly.
Then, for fairly some time, I imagine readers can use this weblog and the final two blogs as references in the event that they so want.
So, let’s begin.
Like I stated, the inventory costs of all three native lenders had a pleasant bounce immediately.
Allow us to begin with the strongest this time, OCBC.
Yesterday, I stated OCBC exhibited essentially the most resilience.
Right now, the inexperienced spinning high delivered and OCBC’s inventory worth broke resistance offered by the 200 days shifting common.
That the inventory worth closed at $12.27 comfortably above the shifting common which is at $12.14 is encouraging.
Nevertheless, whether or not it’s going to keep above this shifting common within the subsequent few periods stays to be seen.
Quantity is the gasoline that drives a rally and since OCBC’s inventory worth rose on comparatively low quantity immediately, there won’t be a powerful comply with by means of.
Though a inexperienced candle shaped immediately, it has a really lengthy higher wick.
This implies that Mr. Market lacks conviction because the inventory’s closing worth was a mere 3 cents larger than its opening worth whereas the excessive of the day was 19 cents larger than the opening worth.
If there ought to be weak point, we might in all probability see the 200 days shifting common, the resistance turned help examined.
If that ought to break, then, the help ranges recognized in my earlier weblog can be subsequent.
Transferring on to DBS.
Identical to OCBC, DBS noticed a lot decrease quantity immediately in comparison with yesterday at the same time as its inventory worth moved larger.
As anticipated, the 200 days shifting common, at present at $33.16, stays the resistance to look at although it’s a inexperienced candle day.
The MFI means that DBS is nearly to maneuver out of oversold territory whereas the MACD means that momentum stays very a lot adverse.
This implies that purchasing curiosity may weaken tomorrow and it could be attention-grabbing to see if DBS may recapture the 200 days shifting common as help.
If there ought to be extra draw back, then, the potential of a transfer again to $30 a share which I blogged about yesterday is again in play.
Now, for UOB which I stated yesterday had the weakest chart of the three.
Has this modified?
I used to be pleasantly stunned once I noticed the resistance offered by the 200 days shifting common taken out but it surely solely lasted for a brief time frame.
UOB’s inventory worth ultimately retreated to shut solely 3 cents above its opening worth.
The 200 days shifting common is, subsequently, nonetheless the rapid resistance.
Quantity immediately was very a lot decrease than yesterday too.
So, it actually is not shocking that the push to maneuver the inventory worth a lot larger couldn’t be sustained.
The inexperienced candle shaped is much like OCBC’s because it has a really lengthy higher wick which suggests an absence of conviction on Mr. Market’s half.
The MFI means that UOB is now not oversold and the MACD reveals that momentum remains to be adverse.
So, it’s much like DBS on this respect which suggests that purchasing curiosity may weaken tomorrow.
If costs ought to transfer decrease, then, the long run help I recognized in yesterday’s weblog may very well be examined in the end.
What would I do in such an occasion?
Earlier than I proceed, please understand that that is what I’ll do given my circumstances.
We now have totally different circumstances and, additionally, beliefs.
We must always have our personal plan even when we’re offered with the identical set of knowledge.
It’s clear to me that inventory costs of DBS, OCBC and UOB are all trending down.
A few of us would possibly bear in mind the saying: “The pattern is our buddy.”
Additionally, “Do not struggle the pattern.”
As a retiree with restricted assets, I’d relatively err on the aspect of warning.
There may be additionally the truth that I have already got a major publicity to all three native lenders.
So, I’m in no hurry so as to add to my investments.
Technical evaluation is generally backward wanting but it surely may give a glimpse of what would possibly occur on occasion.
That is why I all the time search for divergences between inventory costs and the momentum oscillators as divergences are ahead wanting.
Searching for divergences was additionally how I used to be in a position to inform that OCBC’s inventory worth can be extra resilient than DBS and UOBs’.
Keep in mind to have a plan and it ought to be your personal plan.
Associated posts:
1. Shopping for OCBC.
2. Extra draw back or reversal?
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