The local market’s bellwether stock, DBS Group Holdings, has fallen below its 50-day moving average at $25.62. And, with its Jan 29 close of $25.18, DBS is also below a support range at the $25.30 to $25.40 area. Unfortunately, this minor breakdown was accompanied by rising volume, in particular on Jan 29 which was a black candle day.

Quarterly momentum had broken below its own 50-day moving average earlier. There could be some support at the psychological $25 level, failing which the next important support appears at $22.72, at the bottom of a runaway gap. The top of the runaway gap is at $23.80, but it represents only the shadow of a candlestick. The stock’s closing high this year was $27.42 and this was also the one-year high. It could be weeks, perhaps months before prices are able to move towards this level. Whither DBS goes, there goes the local market.  

DBS - THE EDGE SINGAPORE

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook