Technical Analysis: Singapore Banks-The banks had a massive sell-off in a similar fashion March 18, 2020 2013

  • The 3 largest banks in Singapore was not spared the massive sell-off in early March 2020.
  • Technical analysis suggests that the sell-off is far from over given the momentum.
  • Wave analysis indicates that the bearish impulse is going strong on a larger time frame.
  • The initial bearish correction has now turn into an impulsive leg. Any form of rebound is to be taken as a correction, more selling is expected.
  • Our analysis of the 3 banks below, will provide the technical support or rebound levels.

Figure 1: DBS weekly chart

DBS weekly chart indicate that the stock has completed its 5-wave primary bullish impulse wave in early 2018. Subsequent price movement indicates a corrective wave with the current wave as an extended ((iii)) wave of the ((C)) leg. The short-term price movement will continue to move downward to 17.40-17.39 before a rebound back to 20.00 before resuming the sell-off to 15.289-14.62 or 13.24-13.94. These two above mentioned zones are the potential demand level which will exhibit a stronger bullish rebound.

On the indicator front, prices have been trending below the 50 and 200 SMA, indicating a stronger than expected downtrend.

DBS Daily chart shows a strong extended ((iii)) wave and prices have already exceeded 423.6% extension level. However, candlestick shows a strong bearish candle on Tuesday close and should the next period candle be bullish, it will indicate a rebound correction till 19.00-19.07. However, be cautious as the rebound is short-lived and the price will continue fall beyond 18.00 level.

UOB display a similar wave and price structure as DBS. But UOB has more promising technicals than DBS. Although UOB has broken below the 161.8% expansion of wave ((i))-((iii)) of the ((C)) corrective leg, the verdict is not yet finalised as the weekly candle has yet to be closed. Should the weekly candle close above 19.70, then we will see a short term rebound to 20.00 before a sell-off to 17.19-16.80 which is a strong area of demand for a bullish rebound.

UOB daily chart indicates a stronger bullish performance as compared to its peers. The strongest conviction is that UOB price has been sustaining above 19.28 and the presence of a shooting star signal a much-needed rebound. Do note that the rebound is not the end of the downturn nor a recovery but it is a correction instead. The sell-off will occur at 20.50-21.00 region and continue the downturn till 17.31.


OCBC wave count indicate the wave ((iv)) rebound at 200.0% expansion level is closing in and resuming sell-off at 9.00-9.09 level. Potential rebound is near 7.41 region.  

OCBC daily candlesticks show a long-legged doji formation, which is a prelude of a potential morning star, a triple candlesticks bullish reversal pattern. Should there be a formation of a morning star, we will see a rebound correction to 9.40 before commencing another wave of sell-off.


Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!

Featuring regular TA posts and requests to analyse specific stocks
Click to join!
Notify of
Inline Feedbacks
View all comments

Get access to all the latest market news, reports, technical analysis
by signing up for a free account today!