Evening all,
I have been watching DBS quite closely over since the start of the year. I usually have nothing much to comment on the local banking counters because their charts always seem so uninteresting; however, DBS started showing some signs that prompted a move to my watchlist.
DBS has been in a steady uptrend for quite a while already. In 2013, DBS pushed for highs at the $17.50 region, and went down after every attempt to best the year’s high. This is a sign of a trending stock that is starting to tank: the market not seeing any reason to price the company higher. In making higher lows, though, DBS formed what can be seen as a symmetrical triangle. Price bounced off an uptrending 200-day MA too. Late in 2013, DBS flew up and broke the resistance trend line of the then unconfirmed triangle; this meant a breakout towards the upside. Several flat trading sessions followed before DBS dropped like a stone: the bottom triangle trend line broke quickly (busting the symmetrical triangle), the 200-day MA was pierced, and even a bearish pattern – a bear flag – was formed and was confirmed.
Before last weekend, DBS looked set to fall; now, it has already accelerated downwards with a gapped candle for today’s trading. One very interesting pattern that surprised me initially is a lopsided head and shoulders. The recent slide confirms this pattern too. All these signs are telling me to look for further downside in DBS. As a pattern trader, this chart presents quite a few different set-ups for trading. As a longer-term player, I will be waiting for a retracement upwards if all these bearish, confirmed patterns turn out to be successful. Let us see how this goes.
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