Friday, 28 December 2012

Singapore Banks have not broken their resistances

Dear Friends,

Do you remembered our last article on 11 Dec: All 3 singapore banks hit a major roadblock?
http://www.danielloh.com/2012/12/singapore-stock-tip-all-3-singapore.html

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...

Rgds
Daniel
www.danielloh.com


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