Development Bank of Singapore (DBS) – Breaking out from the wedge?

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DBS is trying to break out from the wedge. It may also bounce back from the wedge resistance because there is no volume to support the breakout and go up to $14.7 target price.
DBS stock may go up in the short term because all Six Standard Technical Indicators show bullish strengths.
  • Stock price above 20D, 50D and 200D MA.
  • Stock price at upper Bollinger Band.
  • Stock price on top of Parabolic SAR.
  • MACD just had the crossover and stay on the upper half.
  • RSI is rising above 50 level.
  • Stochastic is rising and moving into 80 level.
 However, I am sticking to my original plan for not buying DBS now due to the following reasons:
  1. DBS is definately not at the low base on historical chart.
  2. The whole market is due for correction. STI index is not showing strength to break the 2700 resistance level. For the past few days, STI opened up and faced selling off in the evening. STI also did not show big response although DOW and S&P500 showed positive movement.
  3. DBS volume is dropping.
  4. Probability of going down is higher than going up.

My constant reminder to myself:

  • Buy Low Sell High
  • What comes down, must go up. What goes up, must come down.
So, I am not in the hurry. Furthermore, there are so many stocks for me to choose to invest. That’s the reason why I am doing so many stock analysis especially on blue chips recently.
Continue ReadingDevelopment Bank of Singapore (DBS) – Breaking out from the wedge?

Singapore Airlines (SIA) – When are you going to take a rest?

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Almost all the analyst reports recommend a SELL rating on SIA but the stock price defied the odd and move upwards for the past few months. The stock price is irrational and I don’t see why SIA stock can keep moving up amid the recession. In addition, the general economy is bad. The passenger traffic drop YOY, cargo traffic and cargo capacity is also falling YOY, the SIA staffs was asked to take unpaid leave, the company is losing money for the first time, but the stock price is UP and UP!

I still believe that SIA will come down at certain point because there is no fundamental to support the continuous uptrend for this blue chip stock.  Looking at the bigger picture, SIA has been on a nice up trend since April, however there is a price volume divergence when the stock price goes higher and higher. The key question is when SIA will start the correction?

Today SIA closed the day with a long black candle. Base on the past few months SIA stock price behaviors, the stock price will probably retrace back to 20D MA when there is long black candle or bearish marubozu candle formed. Can SIA bounce back from the 20D MA and continue its up trend or SIA breaks down the 20D support line to start a bigger correction? We will wait and see. But one thing for sure, it is not the right time to buy because this price ($14) is definitely not at a low price.
Continue ReadingSingapore Airlines (SIA) – When are you going to take a rest?