DBS

DBS: CIMB has Technical Buy Call. Note that prices have now fallen into our short term ‘buy zone’ of $12.50-12.60. Still see a slowdown in short term selling at the moment. There could be a short term rebound from current levels back towards $13.40. The long term technical landscape remains bearish. But short term indicators are oversold, which leaves room for a rebound in the upcoming days.

Yesterday’s inverted hammer could be a potential reversal pattern. Recommend only aggressive traders may want to go long within the $12.50-12.60 range with a tight stop below $12.35. Long term players should just unload on strength. On the downside, a break below $12.35 is likely to send prices towards $10.90-11.16 levels next.