Chart of the week – DBS Group
DBS Group potential impulsive up move sequence intact ahead of earnings
Medium-term technical analysis
Source: CMC Markets
Time stamped: 24 Apr 2021 at 9:40 am SGT
- Since its 2 November 2020 low of 20.25, DBS has been evolving within a medium-term ascending channel and recent price action has managed to trade above a rising 50-day moving average since 24 February now acting as an intermediate support at 28.00.
- In addition, the daily Relative Strength Index (RSI), a momentum indicator has managed to stage a rebound from a significant corresponding ascending support at the 46% level on 22 April which suggests that the odds of a medium-term upside momentum revival have increased at this juncture. This observation supports a further potential up move in price action.
- Hence, if the 27.40 key medium-term pivotal support holds, DBS may see another impulsive up move to target the next resistance zone of 31.00/31.28 (also its current all-time high printed on 2 May 2018) and a break above it opens up scope for 32.65/33.47 next (the upper boundary of the medium-term ascending channel & Fibonacci expansion cluster).
- However, a daily close below 27.40 invalidates the bullish tone for a deeper corrective decline towards the 23.57 major support (the ascending trendline in place since 23 March 2020 low, the former swing high of 9 June 2020 & close to the 61.8% Fibonacci retracement of the up move from 22 September 2020 low to 6 April 2021 high).
Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.
