OCBC Bank is currently trading just above the up trend line and is very near to the resistance level of $9.04. Unless the current sentiment in financial sectors change to a more bullish note, otherwise the downside risk is much higher than upside potential. 20D MA, 50D MA and uptrend support line are also very close to each other. If OCBC breaks below these 3 support levels, the 200D MA will be the level to watch.
Starhub showed a Hammer in the last trading day after the recent sell down. This Hammer is also near the 61.8% Fibonacci Retracement Level which is a significant support indicates a high possibility of trend reversal. Next immediate resistance is at about $2.279 (78.6% FR level and 50D MA).
Although there is a potential trend reversal and the price will go up, but the upside potential of about 3.6% (from $2.20 to $2.28) does not look attractive to me unless I want to acquire Starhub for the quarterly dividend. Anyway, May usually is a bearish month and I will take a wait and see approach to see whether Starhub can drop below $2.00.
SGX has broken 4 supports (20D MA, 50D MA, 200D MA and 78.6% Fibonacci Retracement Level) in one week. Base on the chart pattern, SGX seems to trading in a slow down trend as the new low is always trading lower than previous low.
Key levels to watch:
In summary, SGX chart is bearish and I am waiting for a clear reversal pattern to pick up this blue chip.
