As spoken previously, banks being the pillars of the economy, they will recover the fastest when the market is picking up. Based on yesterday's closing,
DBS 14.710
OCBC 8.600
UOB 18.21
Yet again, does it mean that one should chase the price?
In my views, there are no changes to the current fundamentals. China CaiXin index is still indicating that it is at a slower growth, US on the other hand, is having better economical numbers since the start of this year. While over the past 3 days, the jobless claims, pmi and other numbers are relatively good.
Since August 2015 last year, i have been advocating to my friends and clients to spread the purchases; buy only when the prices were to break lower at every support level. I think this is still applicable to the current market conditions. Not to forget, remember to take profits too along the way, especially when there is profits. A straight line always shorter than a curvy line with ups and downs. it is only logical to collect profits on the ups and get in on the downs.
Based on charts, I do not think this rally is substainable, unless 2 things to happen over the next few days:
1. STI break 2900 mark over the next few days convincingly, breaking out from the down channel effectively. alternatively, another retractment (which is high probably today) forming another higher base above 2700. Refer to the chart below.
2. The meeting between the oil producers, Saudi and US shale oil, to come to a positive conclusive decision
While no one knows waht is the highest and the lowest, we can only make an educated guess, and take a calculated risk. My 2 cents
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=32860&h=2e04188d8d66a5db2663dc798cbb64ff
