DBS Bank Ltd Technical Analysis

Today Financial Market experience a blood bath, STI dropped 188 points as I am writing. STI open 2891 and last traded at 2772 low of the day.

DBS is 14.9% weightage of STI index component index and all 3 banks listed in singapore account for 35.7% weightage of STI Index components.

STI component constituents - Weightage as of March 2020

https://sginvestors.io/analysts/sti-straits-times-index-constituents-target-price


Source from Wikipedia explains why DBS is also the largest bank in South East Asia by assets and amongst the larger bank in Asia that explains why Singapore is the 2nd or 3rd or even 4th world most important financial center in the world. Hence Financial Services industry is probably the largest contributor of Singapore GDP growth.

https://en.wikipedia.org/wiki/DBS_Bank

DBS was named world best bank by Euromoney magazine

https://www.dbs.com/newsroom/DBS_named_Worlds_Best_Bank_by_Euromoney_magazine

http://www.theasianbanker.com/ab500/2018-2019/largest-banks-asia-pacific

https://www.businessinsider.sg/dbs-uob-and-ocbc-shoot-up-ranking-of-worlds-500-most-valuable-brands-with-one-bank-rising-128-spots-from-last-year

Lets look at the technical Chart of DBS.

DBS Monthly Chart 6.3.20

DBS Monthly Chart 11.12.20

I always adopt contrarian style different from the herds instinct when it comes to trading and investment.

I am not fearful but excited when everyone else is fearful and in extreme fear right now, as i am writing Violatitliy Index (VIX) hit day high 53.15 where psychology resistance 50 breaks, implying we are in extreme fear right now. DBS is currently trading at undervalue ripe for bargain hunting.

On 9 March 2020, DBS open 21.22, day low 20.03 and last close at 20.13. DBS is setup for swing trade right now with target of 32 in sight. Feb 2016 low was 10.29 and reached price level of 26.54 high in May 2018, there is a difference of 16.25. using the difference 16.25 + day low on 23 March 2020 15.84 compute as 32.09 price target for the swing trade.





Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.

Crude Oil WTi Chart Analysis - Part 2

As a Trader or Investor, we must adopt a contrarian strategy avoiding overcrowding, overbought, overvalue and overhype of an asset class financial instruments products.

There are so many bearish newsfeed on Crude Oil at the moment.

Recently i came across a news re-published from The Wall Street Journal (WSJ) by author Amrith Ramkumar on Crude Oil WTI that it had enter into a bear market with this headlines - Concerns about an international slowdown, coupled with swelling supplies, send crude on a six-week skid
"U.S. Crude Oil Enters Bear Market Due to Global-Growth Fears"

https://www.wsj.com/articles/oil-on-track-for-bear-market-due-to-global-growth-fears-11559748511?fbclid=IwAR2PJJv_J5ob6EL2d8uQBxH7PjVSnNI2ait6Ylevq1p5doDjHzosg6d6-PQ

Bloomberg published an article on Crude Oil WTi on 1 March 2020 that "A $30 Oil Price is the real virus threat to OPEC"

https://www.bloomberg.com/opinion/articles/2020-03-01/a-30-oil-price-is-the-real-virus-threat-to-opec?fbclid=IwAR1kAsZc-q0HlV_b_6vCPJeGZOBcRF3b-odLp0_J4hZWwaTJlZ32vOYjB40


"Will we really see Negative oil demand growth this year" on 4 March 2020

https://oilprice.com/Energy/Energy-General/Will-We-Really-See-Negative-Oil-Demand-Growth-This-Year.html

"Goldman Sachs : Brent Oil Could drop to $45 in April" on 4 March 2020

https://oilprice.com/Energy/Oil-Prices/Goldman-Sachs-Brent-Oil-Could-Drop-To-45-In-April.html

"Coronavirus Panic is causing a worst case scenario for Oil" on 28 February 2020

https://oilprice.com/Energy/Energy-General/Coronavirus-Panic-Is-Causing-A-Worst-Case-Scenario-For-Oil.html

"Oil Prices in freefall as Pandemic fears grow" on 27 Februrary 2020

https://oilprice.com/Energy/Energy-General/Oil-Prices-In-Freefall-As-Pandemic-Fears-Grow.html

I use this piece of article to cross reference with the Weekly Chart Technical Analysis of Crude Oil WTi and i found that this piece of news come at the right time to accumulate long positions because the price is at the lower band of the price channel low poised for a rebound technical rally. Many traders or investors would be psychology affected by this negative news published and may take a short position on Crude Oil WTi.

I understand media always like to overhype an issue of greed and fear, a famous quote by Warren Buffet be greedy when everyone are fearful and be fearful when everyone are greedy" This quote by reowned investor Warren Buffet is not easily applicable if one lacks understanding on psychology part of the trading or investing journey.

In this article how it derive Crude Oil WTi had enter a bear market so called technical bear is using April 2018 high with a drop of more than 20% which is around 76 estimated at the time dropped to 43 recent low on 2 March 2020.

The formula is computed by using 76 X 0.2 = 60 price and below is consider a technical bear market, My concern is why it was re-published at this time and i happened to pick up this piece of newsfeed initially published in 5 June 2019, if we did not look at the dates published carefully thought it is the most recent and up to date publications with the Headlines.

Weekly Chart With Technical Analysis

Base on Technicals, Crude Oil WTi is trading at undervalue range of lower band of price channel. Lower Band of price channel makes a nice support for Crude Oil to stage a rebound to 60 (medium band of price channel) and 80 at the upper band of the price channel once Coronavirus situation improves.

It is surprising that Crude Oil did not rally based on geopolitical latest conflict between Turkey and Syria and Coronavirus overshadow the Turky and Syria geopolitical conflict.

https://www.nytimes.com/2020/03/05/world/europe/putin-erdogan-syria.html

https://www.nytimes.com/2020/02/27/world/middleeast/russia-turkey-syria-war-strikes.html?action=click&module=RelatedLinks&pgtype=Article





Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.

Clarence Yo - Google Translate Tutorial

Dr. Copper Chart Analysis Part 2

I am updating the trend for Dr. Copper which is the pulse of the maecro economy.

I came across this article below published by Author Clive Maund on Kitco, that Dr.Copper, Crude Oil WTI, Baltic Dry Index (BDI) and China A50 index weakness would result in continue to call for Market crash soon.

I decide to chart Dr. Copper to analyse the current trends of Dr. Copper Price, My conclusion is we are still in a long term bull market will not enter any recession caused by Covid 19 - Coronavirus which will cause temporary economic activity strain on global economies where Industries like, shipping, logistics, retail & food & beverage, tourism, transportation are badly affected by 'fear". Consumer afraid of contracting coronavirus avoid large congregation of human traffic, Global supply chain are badly hit short term due to China cities are in a lockdown restricting human flow to stem contagion of coronavirus from spreading, Hence Baltic Dry Index (BDI) has clearly reflected in its current index fluctuations, BDI reached 2518 points in 4 September 2019 has seen crashed all the way down to 411 points in 10 February 2020. Phase 1 trade deal was signed on 15 January 2020

https://www.reuters.com/article/us-usa-trade-china-details-factbox/whats-in-the-u-s-china-phase-1-trade-deal-idUSKBN1ZE2IF

https://www.facebook.com/598617065/posts/10157134631957066/?d=n

Monthly Chart 

Monthly Chart - Technical Analysis

Dr. Copper Technical Chart Analysis was observed price of futures is consolidating in a price channel trend line supported by classical neckline resistance turn support.

Dr. Copper price is going to reverse its downward trend at the moment with most mainstream media overhype the fear of financial markets about to collapse with the outbreak of Black Swan Coronavirus which has an impact on the growth of second largest economy, China. The current PMI reading register a reading of 40.3

From Technicals perspective, swing trade setup for Dr. Copper with a price target of 4 USD price level in anticipation.

https://www.cnbc.com/2020/02/29/china-pmi-factory-activity-shrank-at-fastest-rate-on-record-in-february.html

https://www.cnbc.com/2020/03/02/china-economy-caixinmarkit-february-manufacturing-pmi-amid-coronavirus.html




Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.