• Since falling below its trading range of S$7.60 and S$10.30, the stock hit a low of S$6.42. It has now rebounded upwards to test the breakdown level of the said trading range at S$7.60. There is a cluster of resistance at the S$7.60- 7.78 levels.
• Continue to Sell on strength for now as the stock is less likely to breakout above the resistance cluster. The S$6.60, S$6.42 and S$6.00 levels could still be tested first before this downtrend ends. Only a breakout above S$8.00would negate this bearish outlook.
• Readings on the indicators are positive. MACD has confirmed its golden cross while its RSI is rising. There could a tad more upside but as long as the trend is still down, we would prefer to Sell on strength.
DBS Group’s principal activities consist of investment holding, banking and financing, the provision of mortgage financing, lease and hire purchase financing, corporate advisory services, nominee and trustee services, funds management services, stockbroking, primary dealership in Singapore Government securities, merchant banking, factoring, credit card and venture capital operations, and other financial services.
United Overseas Bank (UOB SP; S$9.35) – SELL
• From the looks of the chart, UOB is still bearish despite the sharp rebound recently. UOB is now rebounding to retest the S$10.00 psychological resistance and also the base of its previous trading range at S$10.50.
• The stock is now no longer oversold. MACD is positive but the momentum is not as strong as it should be. The MACD could possibly still do a rollover and head back lower from here. It is best to remain cautious for now.
• Hence, we are sticking to our Sell on strength call as the resistance at S$10.00 (gap) and S$10.50 are likely to cap gains for now. Only a breakout above S$10.50 would suggest that this downtrend has ended.
UOB provides a wide range of financial services through its global network of branches/offices and subsidiaries/associates.
Sino-Environment Tech Group (SINE SP; S$0.085) – SELL
• The stock gapped down sharply earlier in the month and this is usually a very bad sign. Any rebound should be seen as an opportunity to sell out. Resistance at S$0.15 is likely to be firm.
• The stock is still a Sell despite an oversold RSI. MACD has remained negative supports our view of selling on rebounds.
• Even though it appears to be a buy at currently perceived cheap levels, the risk of further downside is still high. Continue to avoid this stock as stale bulls selling would likely cap the upside.
The Group is an environmental protection and waste recovery solution provider in China. It specialises in the treatment, management and recovery of volatile organic compounds ('VOC') in particular toluene, from industrial waste gas.
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