We have a technical BUY on DBS with a target price 13.84. Based on wave counts, we believe that the last impulsive is in the making. Volume showed that there are signs of buying interests. In addition, a crossover of 200-day moving average provides a strong support. If the breakout of 12.42 does not occur, DBS is expected to consolidate within the range of 10.88 and 12.42.
DBS crossed 200-day moving average on 5th May and tested the recent peak of 12.42 three days later. RSI is trading at bullish range.
We believe that the second corrective wave ended at 14th May 2009 and last impulsive wave is in the making before a bigger correction.
The crossover of RSI marked the end of the minor correction from 12.42 to 10.88. Volume showed signs of increasing buying activities. Time cycle analysis tells us the minor correction has ended and a new cycle has just begun. If the convincing breakout of 12.42 does not occur, though unlikely, we believe DBS would continue to consolidate within the range of 10.88 and 12.42.
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