Sunday, September 1, 2013

OCBC: A Good Catch For Short-Term Rebound?

Last week, I talked about the 3 Things You Should Spot On STI Chart. I mentioned about lower highs and lower lows on the Straits Times Index (STI). The chart is actually showing us a lot of signs that the market is likely heading towards a bear market.
Chart On The Straits Times Index
However, as the Syria worries slowly disperse, I see that the STI has also slowly recovered from the selling fever. Technically, the STI has hit the 3,000 point critical support and starting to have a bounce. So what stock can we look at right now?
Chart On Oversea-Chinese Banking Corporation
As the overall trend is still downwards, we will need to look for some good companies that are outperforming the STI. As a STI constituent stock, Oversea-Chinese Banking Corporation (OCBC) has stopped dropping seven days ago where the lowest it hit was $9.81. Comparing with the STI during this period, the STI continued to drop for another 100 points. Hence, I see that there might be some accumulation in OCBC during this period. As market is unpredictable, a stop-loss below the support at $9.80 is always a good practice.

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