Located in a dynamic major downtrend, DBS shares hit a low at 8.87 and formed a key reversal day on October 28. The past two weeks, the stock established another leg down towards this trough after facing resistance at the area around 12. Last week on Friday DBS printed a low at 8.92 and formed a bullish engulfing candlestick above this area. A bounce off current levels seems likely after the current short-term narrow consolidation. A close above resistance at 10.12 would confirm a bullish stance. Minor resistance is seen at 9.66. In order to complete a major bottom, a decisive close above 12.02 is needed. Regarding the downside, a sustained violation of key support at 8.87 would negate the current bottoming process and likely resume the major downtrend.
Strategy: Aggressive traders may consider taking counter-trend long-positions at current levels. More risk-averse investors may await either an intraday break above 9.66 or a break above 10.12 on a closing basis before getting long. Protective stops may be placed just below 8.87.
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DBS Technical Analysis by DB
Located in a dynamic major downtrend, DBS shares hit a low at 8.87 and formed a key reversal day on October 28. The past two weeks, the stock established another leg down towards this trough after facing resistance at the area around 12. Last week on Friday DBS printed a low at 8.92 and formed a bullish engulfing candlestick above this area. A bounce off current levels seems likely after the current short-term narrow consolidation. A close above resistance at 10.12 would confirm a bullish stance. Minor resistance is seen at 9.66. In order to complete a major bottom, a decisive close above 12.02 is needed. Regarding the downside, a sustained violation of key support at 8.87 would negate the current bottoming process and likely resume the major downtrend.
Strategy: Aggressive traders may consider taking counter-trend long-positions at current levels. More risk-averse investors may await either an intraday break above 9.66 or a break above 10.12 on a closing basis before getting long. Protective stops may be placed just below 8.87.
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