SG Stock Focus DBS may see minor corrective decline within a medium term uptrend

Medium-term technical outlook on DBS (SGX: D05)

Key technical elements

• The relentless rally of 21% from its 20.01 low printed on 15 September 2017 to last Thursday, 09 November 2017 high of 24.30 has started to show signs of bullish exhaustion to undergo a minor corrective decline within a medium-term uptrend in place since 31 October 2016 low.
• Last Friday (09 Nov) up move has stalled right at the upper boundary of the medium-term ascending channel in place since 31 October 2017 low and formed a daily “bearish Harami” candlestick pattern. In addition, the daily RSI has also started to reverse down from an extreme overbought level of 85%. These observations suggest that the recent up move from 15 September 2017 low has lost upside momentum.
• The intermediate support rests at 23.14/22.78 with the key medium-term pivotal support coming in at 22.20( former swing high areas of  27 Jul/02 Aug 2017, the median support of the aforementioned medium-term ascending channel & close to a Fibonacci retracement cluster level).
• The next significant medium-term resistances stands at 24.60/82 (Dec 1999 high & 0.618 Fibonacci projection of the up move from 31 Oct 2016 low to 03 Aug 2017 high projected from 15 Sep 2017 low) follow by 25.47/70 (upper boundary of the medium-term ascending channel from 31 Oct 2016 low & Fibonacci projection cluster).

Key levels (1 to 3 months)

Intermediate support: 23.14/22.78

Pivot (key support): 22.20

Resistances: 24.60/82 & 25.47/70

Next support: 21.00

Conclusion

Since last Thursday, 09 November 2017 high of 24.30, DBS is now facing the risk of undergoing a minor corrective decline/consolidation towards the intermediate support zone of 23.14/22.78 with a maximum limit set at the 22.20 key medium-term pivotal supports.

Thereafter, DBS may resume its bullish impulsive wave sequence within its on-going medium-term uptrend in place since 31Oct 2016 low to target the next resistances at 24.60/82 follow by 25.47/70.

On the other hand, failure to hold above 22.20 shall open up scope for an extended corrective decline towards the next support at 21.00 (lower boundary of the aforementioned medium-term ascending channel)

Chart is from eSignal

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