DBS – potential trading idea going to XD (26 Mar 18)
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
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
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
Source: InvestingNote 26 Mar 2018
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.
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