Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Chart of the week – DBS Group potential impulsive up move sequence intact ahead of earnings

Chart of the week – DBS Group 

DBS Group potential impulsive up move sequence intact ahead of earnings

Medium-term technical analysis

click to enlarge chart

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 is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.