14 Oct 2021

OCBC Bank (SGX: O39) corrective downside is coming to an end after it managed to stay above support zone 2 at $11.03-$11.24. Technical has also indicated that bullish upside will return:   

  1. The downside corrective channel is a larger bullish flag in formation, which is a bullish continuation pattern.
  2. The triple bottom formation is confirmed after price break above the neckline resistance zone at $11.70-$11.79 and the bullish divergence is an added confirmation.
  3. Prices break above the falling wedge within the channel, confirming the bullish price action.
  4. Wednesday’s strong bullish candle gaps up above the Tenkan and Kijun-Sen bullish crossover.

*Expected timeline of the trade is 5 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Blackline = 26 periods Chikou Span. Lagging line