sg stock focus dbs to resume potential upleg within medium term bullish trend 2694162017

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

(Click to enlarge charts)

Key technical elements

• The medium-term uptrend in place since 29 December 2016 low remains intact for DBS (see weekly chart).
• The recent 4.4 % pull-back from its 21.18 high of 25 May 2015 has managed to stall right at the gap support formed on 02 May/03 May 2017, close to the lower boundary of a medium-term ascending channel from 03 January 2017 low.
• In addition, the daily RSI oscillator has managed to stage a rebound at its corresponding supports at the 43% level. This observation suggests that medium-term upside momentum of price action remains intact and DBS is likely to resume its bullish impulsive upleg within a medium-term uptrend.
• The next significant medium-term resistances stands at 21.155 and 21.96 which is defined by the swing high area of May 2007, a Fibonacci projection cluster and the upper boundary of the aforementioned ascending channel from 03 January 2017 low (see daily & weekly charts).
• Relative strength chart analysis suggest that DBS is likely to continue to outperform the benchmark Straits Times Index (STI) by around 8% (refer to the last chart).

Key levels (1 to 3 months)

Intermediate support: 20.68

Pivot (key support): 20.22/19.86

Resistances: 21.55 & 21.96

Next support: 17.15

Conclusion

DBS is now likely to resume its bullish impulsive upleg within its medium-term uptrend in place since 29 December 2016 low. As long as the 20.22/19.86 medium-term pivotal support holds, DBS has the potential to stage a further upmove to target the next resistances at 21.55 follow by 21.96 next

On the other hand, failure to hold above 19.86 is likely to invalidate the medium-term uptrend to open up to scope for a corrective decline towards the next support at 17.15 (50% Fibonacci retracement of the primary uptrend from February 2016 low & close to the major ascending trendline support from February 2016 low).

Charts are from eSignal

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