DBS Not In a Favourable Situation

BUY OR BYE

Though this was a short trading week but was an eventful one as we saw Elon Musk indicating of taking Tesla private to Turkish Crisis.

And back to local market (Singapore), this week we too saw a significant technical event occurred on DBS chart. We observed that for the first in 20 months, DBS has fallen out of favour on the SG market.

Using on our proprietary relative strength indicator, DBS's Relative Strength Indicator has traded below zero, under-performing the market.

The most recent two occurrence saw DBS went into a bearish bias after it traded below zero.

Fund managers seeks Alpha to beat their respective benchmarks. Thus, when a stock under-performs the market, it only means either fund managers will be avoiding such stock or are already exiting/shorting the stock.

Either way, we'll don't want to be trading against them.

As a retail/private trader, the RS Indicator helps us trade alongside with smart money.

In this instance, having a bearish bias on DBS, helps us either avoid the stock or take bearish actions even as analysts shouting BUY BUY BUY.

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

DBS Group Holdings (D05): Upward Move Expectations

DBS Group Holdings (D05) Upward Move Expectations Technically, price trading above 36.58, could see DBS Group retest previous high of 38.55. Both Relative Strength and momentum indicator FFI are supportive of the move. Stop below 35.42 Disclaimers apply

Keppel DC REIT (AJBU): Expect price to trade towards S$2.00

Keppel DC REIT (AJBU) Expect price to trade towards S$2.00 We have observed a decrease in technical supply at the S$1.80 support area during recent trading sessions. Furthermore, a softer interest rate outlook could be advantageous for the Data Centre operator. Consequently, we anticipate the REIT to move towards our initial target of S$2.00, with the potential to reach S$2.20 if it breaks through resistance. Our stop level is set below S$1.72. Disclaimers Apply

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