I'm Brandon, a senior stockbroker at a local securities firm and also a professional trainer with Singapore Exchange (SGX) Academy. Holder of Chartered Market Technician (CMT) and Certified Financial Technician (CFTe) with over 10 years experience in the financial industry.

This blog aims to share how private traders can forecast price and trade in line with the market and smart money by applying Wyckoff principles and simple technical analysis techniques.

Tuesday, 27 December 2016

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