DBS – potential trading idea going to XD (26 Mar 18)

Dear all,

Based on a simple tracking of DBS’ share price performance from CD to XD, on average, DBS seems to move approximately 4-9% above its CD price, nearer to XD (translating to around S$27.86-29.13). See Table 1 below. DBS is going to XD $1.10 on 3 May.

Table 1: DBS’ share price performance from CD to XD

Table 1_DBS' share price performance from CD to XD

Source: Ernest’s compilations

 

What are the analysts saying?

Based on Figure 1 below, average analyst target is around $31.15. At $27.21, this represents a potential capital upside of around 14.5%. Estimated div yield is around 4.1%. There are 17 buy; 6 hold and no sell calls.

Figure 1: DBS’ analyst compilation by Bloomberg

DBS analyst TP 26 Mar 18

Source: Bloomberg 26 Mar 18

 

How does DBS’ chart look?

Based on Chart 1, DBS has dropped $2.50, or 8.4% from an intraday high of $29.71 on 23 Feb 2018 to close $27.21 on 26 Mar 20.18. Both 20D and 50D exponential moving average (“EMA”) have turned down but they have not formed any death cross formation yet. RSI closed at 39.8 today. At 39.8, RSI is not oversold but it is noteworthy that this is the lowest since 7 Feb 2018 (Dow tumbled around that time) where RSI closed at 38.3. It seems likely that DBS may attempt to close the gap ($27.67 – 28.12) over time.

Near term supports: $26.98 / 26.81 / 26.65 / 26.40

Near term resistances: $27.36 / 27.55 / 27.92 / 28.12 – 28.15

Chart 1: DBS closed $27.21, off the lows today

DBS chart 26 Mar 18

Source: InvestingNote 26 Mar 2018

 

Noteworthy points

a) I am vested and have highlighted to my clients about the above potential trading idea this morning where DBS was trading below $27.00;

b) Everybody is different hence readers / clients should exercise their independent judgement and carefully consider their percentage invested, returns expectation, risk profile, current market developments, personal market outlook etc. and make their own independent decisions. Importantly, please do your own due diligence before trade execution. The above is a very simple tracking idea and has not taken into account of specific company and macro factors. Furthermore, past performances do not guarantee future performance.

Readers who wish to be notified of my write-ups and / or informative emails, can consider signing up at http://ernest15percent.com. However, this reader’s mailing list has a one or two-day lag time as I will (naturally) send information (more information, more emails with more details) to my clients first. For readers who wish to enquire on being my client, they can consider leaving their contacts here http://ernest15percent.com/index.php/about-me/

 

P.S: Do note that as I am a full time remisier, I can change my positions fast to capitalize on the markets’ movements.

 

Disclaimer

Please refer to the disclaimer HERE

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