The local market’s bellwether stock, DBS Group Holdings, has fallen below its 50-day moving average at $25.62. And, with its Jan 29 close of $25.18, DBS is also below a support range at the $25.30 to $25.40 area. Unfortunately, this minor breakdown was accompanied by rising volume, in particular on Jan 29 which was a black candle day.
Quarterly momentum had broken below its own 50-day moving average earlier. There could be some support at the psychological $25 level, failing which the next important support appears at $22.72, at the bottom of a runaway gap. The top of the runaway gap is at $23.80, but it represents only the shadow of a candlestick. The stock’s closing high this year was $27.42 and this was also the one-year high. It could be weeks, perhaps months before prices are able to move towards this level. Whither DBS goes, there goes the local market.
