Chart of the week – Oversea-Chinese Banking Corp
Oversea-Chinese Banking Corp medium-term uptrend intact ahead of earnings
Medium-term technical analysisclick to enlarge chart
source: CMC Markets
Time stamped: 1 May 2021 at 2:30 pm SGT
- Oversea-Chinese Banking Corp (OCBC) will announce its Q1 2021 earnings results this coming Friday, 7 May before the market open. Since its low of 8.40 printed on 2 November 2020, the share price of OCBC has been evolving within a medium-term ascenidng channel and its price actions have traded above an upward sloping 50-day moving average since 4 November 2020.
- The daily Relative Strentgth Index (RSI) indicator has managed to stage a rebound from a significant corresponding ascending support on 22 April which suggests that the potential medium-term upside momentum of price action remains intact.
- Hence, the medium-term impulsive up move sequence in place since 2 November 2020 is likely to be intact at this juncture. As long as the 11.80 key medium-term pivotal support holds, OCBC may see a further potential up move to set sight on the 12.50 intermediate resistance and a break above it opens up scope to target 13.10/40 next (upper boundery of the medium-term ascending channel & a Fibonacci expansion cluster level).
- On the other hand, a daily close below 11.80 invalidates the bullish scenario for a corrective decline towards the next support at 11.10 (former swing high areas of 6/21 February 2020 & the 61.8% Fibonacci retracement of recent up move from 4 February low to 30 April high).