DBS Bank Short: Technically SpeakingBased on technical analysis, I have a few reasons to believe that DBS has reached a peak, or is peaking.
Briefly, here's a list of what's shown on the chart:
1. Elliott Wave counts shows that the vertical move from 5th Aug 2024 to 20th Sep 2024 can be deemed as a 5th wave of a 5th wave.
2. RSI(7) on the daily timeframe is in overbought and at a level that will usually turn down. (Take note that if you study previous price where the RSI(7) reached this level, it usually shows a 3rd wave then a 4th before another high was reached).
3. 2 Fibonacci extension levels converges around $39:
3.1. The first is where I extend cycle wave 1 (green fibo extension) and shows that entire cycle wave could potentially be 1.618x of cycle wave 1. Actual target: $38.88
3.2. The second is where I extend primary wave 1 of cycle wave 5 (purple fibo) and shows that wave 5 could be 1.618x of wave 1. Actual target $38.95
The idea can easily and quickly be invalidated if DBS easily make another new high of say $39.50 (which is why the stop loss is placed around that price). But no matter what, it is important to stay cautious and look for signs that price action is no longer sustainable.
Good luck!
