OCBC

OCBC (O39): Swing Trade
Technical Observation:
 The stock pulled back since forming a high on 8th Dec 2016. The trading volume softens as the stock price came down; technically low volume selling signifies a pull back, instead of a trend reversal. S$8.85 level is a significant support level in view that it’s a support-turned resistance level coupled with Fibonacci 50% retracement level.

Thus, we are seeing a good probability of price rebound towards next immediate resistance at S$9.10.

As the stock continues to trade in the consolidation phase, swing trade with tight stop and target price is preferred.

Probable Trade Plan:
Entry: S$8.92 Target: S$9.10 Stop: S$8.84 (RRR: 2.25x)

Similar Occurrence on:
19/06/2009, 25/11/2010, 08/03/2012,
30/12/2012, 15/01/2013, 05/09/2014