OCBC’s upside look limited as the stock has reached the critical resistance level at about $9.00. This level is 52 weeks high and also the resistance of the previous up trend support. A Triple Tops may be in formation with the same neckline extended from the previous Double Tops. Have a close eyes to watch whether 20D, 50D and 200D MA support is strong enough. If the neckline is broken at about $8.10, the price target is $7.00.
OCBC is currently sitting on the neckline of a Double Tops, and also a 200D MA support. The uptrend has already ended for OCBC since the support is broken and turned into resistance. If OCBC breaks the neckline, the price target of the Double Tops breakdown is $7.00 which also coincides with 38.2% FR level.
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.
