DBS is holding firm above support in line with rising yield

DBS further potential push up within a medium-term range configuration

DBS (SGX:D05)



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Key Levels (1 to 3 weeks)

Intermediate support: 24.85

Pivot (key support): 24.00

Resistances: 25.40 & 28.50/64

Next support: 22.75/25

Directional Bias (1 to 3 weeks)

Bullish bias for DBS, a major Singapore bank stock in any dips above 24.00 key medium-term pivotal support for a potential push up within 7-momth range configuration to target the next resistances at 25.40 and 28.50/64. However, a break with a daily close below 24.00 negates the preferred bullish tone for a slide back to retest 22.75/25.

Key elements

  • Since 17 Apr 2019, the share price movement of DBS has been moving in lock-step (direct correlation) with the yield of the 10-year U.S. Treasury Note (T-Note 10). In the past one week, the yield of the T-Note 10 has started to rise which has been accompanied by a rally of 5% seen in DBS. Technical elements of the T-Note 10 yield is advocating a further potential rise to 2.00% in the short to medium-term.
  • The recent rebound seen in DBS has taken shape right at an ascending range support in place since 21 Nov 2018 swing low area.
  • The daily RSI oscillator has shaped a bullish divergence signal at its oversold region coupled with the relative strength ratio of the DBS/STI that is showing a potential bullish breakout at this juncture. These observations suggest a revival of medium-term upside momentum with DBS’s impending outperformance against the benchmark FTSE Straits Times index (STI).
  • The key medium-term resistance stands at 28.50/64 which is defined by the upper limit of the range configuration in place since 21 Nov 2018 and the 0.764 Fibonacci projection of the up move from 21 Nov 2018 low to 30 Apr 2018 high projected from the recent 29 Aug 2019 low.

Charts are from eSignal 


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