Do you remembered our last article on 11 Dec: All 3 singapore banks hit a major roadblock?
We mentioned that UOB resistance is $20, OCBC is $9.80 or $10(major resistance), DBS is $15. You can see that it continues to be a strong resistance!
At that time, we encouraged you to use the banks as a hedging tool against your bullish positions going into the year end meaning short them. Till now, the 3 major banks have yet to break out of their major resistances.
You probably can see them struggling. Today, UOB even cause a panic when at 12pm, it drop to $19.18 from $19.70 in a few minutes. I think this is caused by high frequency trading. But later on, it came back in the next few minutes.
Conspiracy theory tells me a group of traders purposely attack this stock given the big surge in volume. Stop losses are taken out before market makers took over to push back the price.
Here I would like to remind you that such attacks normally occur during lunch breaks just like the flash crash attack that happened to Dow Jones a couple of years back where in 20 minutes DOW drop by 1000 points. It happened on lunch time also.
Consider shorting the banks still to hedge your longing positions...