The banks has recently generated heightened interest from the retail investment and trading side due to its short term rally. Lets take a closer look at their development at current junction.
DBS current establishment of its short term uptrend channel has been met with a bearish divergence in volume and MACD Histogram, signifying weakness in this short term rally. The current rally has also exceeded its RSI overbought range at 84% that was last seen a year ago. At current junction, the horizontal support level $14.90 has to hold during any imminent correction, for this uptrend channel to remain healthy.
OCBC establishment of its uptrend channel has broken its major resistance at $8.90, the strongest in its rally among the three local bank counters. However, this rally has also been met with a bearish divergence in volume, and both RSI & MACD Histogram, signifying weakness in this short term rally. The major resistance turned support of $8.90 is the critical level to hold for more bullish upside to this counter, with its next resistance level at $9.60.
Likewise, UOB establishment of its short term uptrend channel has also been met with a bearish divergence in volume and MACD Histogram, with RSI exceeding an overbought range of 87% that was last seen 13 months ago. At current junction, UOB is reaching a major resistance range of $19.78. More upside is expected of the counter as long as $18 resistance turned support level holds during any upcoming correction.