Support 1: 10.35 Resistance 1: 11.86
Resistance 2: 12.19
The expectation of OCBC rising higher was met with a setback at the start of May 2019 when the stock did not further its bullish movement by forming 2 successive candles to determine the breakout of the range.
Furthermore, the stock went into a freefall for the whole of May. Although there are signs of bullish return at the bottom of the range, the bear is still in control of the stock. There is strong indication that the stock will dip again at 38.2% of the Fibonacci retracement level as there is a strong display of selling. Another point to note is that the 22 period SMA has crossed below both the 50 and 200 SMA, further echoing the bearish sentiment.
However, we believe that after the bearish fall at 11.05, there is a possibility of recovery rise at 88.6% of the total Fibonacci retracement of the range.
*Should the stock breaks above the price level of 11.50; there is a possibility it might extend beyond 12.00
Red line = 200 period moving average
Blue line = 50 period moving average
Green line = 22 period moving average