Wednesday, April 6, 2016

Banks consolidate as offshore stocks weaken

DBS GROUP HOLDINGS ($15.38) - Could lose relative strength
- Continues to lose relative strength against its sector
- Prices appear poised to "cross" below 100 day moving average
- Sign that the upmove is likely to fade is volume contraction as prices rose
- One saving grace is upturn by the 50 day moving average

UNITED OVERSEAS BANK ($18.87) - Sideways consolidation likely
- Prices may succeed in holding above 100 day moving average
- Quarterly momentum has stabilized
- Immediate moves are likely to be range-bound between $18.61 and $19.23
- Resistance is at $19.23
- Break below $18.61 would cause prices to weaken significantly

KEPPEL CORP ($5.83) - Weakness sets in
- Prices appear poised to fall below 100 day moving average
- Indicators suggest that prices are likely to move within a sideways range rather than fall sharply
- Beak below $5.89 would cause prices to drift towards $5.50
- Recovery should resume after a week or two of sideways consolidation

OVERSEA-CHINESE BANKING CORP ($8.84) - Consolidation to continue
- Prices had moved above 200 day moving average
- Prices may consolidate further
- Break below $8.80 - $8.83 level could cause quarterly momentum to break below its support
- Resistance is at $9.12
- Counter continues to display greater relative strength than the sector

CITY DEVELOPMENTS ($8.17) - Continues to gain relative strength
- Counter continues to gain strength against its sector
- 50 and 100 day moving averages are about to form a positive cross
- Prices are currently testing 200 day moving average.  Break would reinforce bullish outlook leading to upside of $8.50
- Support is at $7.80 to $7.85 range

SEMBCORP INDUSTRIES ($3.02) - Could continue to ease
- Prices are likely to ease in the next week or so
- Indicators suggest a sideways range rather than a precipitous decline
- Volume is expanding as prices decline, hinting at marginal selling pressure
- Prices are unlikely to move below $2.73


(Source:  TheEdgeSingapore April 4 2016)

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