SELL DBS, UOB, SGX technically

Singapore Exchange (SGX SP; S$6.21) – SELL

• The stock broke out of its long term bullish wedge pattern and rallied strongly to current levels. However, the rally has been too sharp and too fast. The angle of the run-up suggests that this run is not sustainable in the long run, and a pullback is likely to take place. The strong resistance is at S$6.30 and S$6.50.

• The overbought RSI is a sign of caution that this rebound is coming to its tailend. Investors should be looking to take profits now and not looking to buy at current levels. Sell on strength.

• A pullback to retest the breakout support at S$5.18-5.30 is likely. The rising 30- day SMA at S$4.77 is the next support.

Singapore Exchange Limited owns and operates Singapore's Securities and derivatives exchange and their related clearing houses. The Company also provides ancillary securities processing and information technology services to participants in the financial sector.

DBS Group Holdings (DBS SP; S$9.15) – SELL

• Since hitting a low of S$6.42, DBS has rebounded strongly, overcame resistance after resistance. However, this rebound appears to be losing momentum. The stock is now trying to climb above the S$9.24 resistance again. The next resistance is at S$9.45-9.60.

• MACD’s upward momentum is slowing while its RSI is about to confirm a triple bearish divergence.

• Although the longer term charts have turned positive, the stock is likely to consolidate in the coming days. Take profit now with the next target at S$8.16 and S$7.83, its 38% and 50% Fibonacci retracement levels from a low of S$6.42 to a high of S$9.24.

DBS Group Holdings Limited and its subsidiaries provide a variety of financial services. The Company's services include mortgage financing, lease and hire purchase financing, nominee and trustee, funds management, corporate advisory and brokerage . DBS Group also acts as the primary dealer in Singapore government securities.

United Overseas Bank (UOB SP; S$11.04) – SELL

• Similar to DBS, UOB rebounded about 37.5% from a low of S$8.07 to a high of S$11.10. UOB is now testing its S$11.10 strong resistance level. The next resistance is at S$11.90-12.00.

• Traders may want to lock in some profits on any strong upward movement. Investors who missed out earlier may want to wait a while before getting in. This potential pullback to between S$9.94 (its 38% FR) and S$9.58 (50% FR).

• Very short term Indicators are now extremely overbought, which would likely lead the stock into a retracement phase in the coming days. The bearish divergence on its MACD Histogram further supports our bearish view in the short term.

United Overseas Bank Limited offers a full range of commercial banking and financial services. The Company offers private banking, trust services, venture capital investment, merchant banking, brokerage services, insurance, fund management, derivatives trading, precious metal trading, factoring, hire purchase, and life insurance

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