Recent MOU Signing with Singtel

OCBC has recently signed MOU with Singtel to allow e-payments via QR code in Thailand and Japan apart from in Singapore. What this potentially means is start of cashless payments cross borders in SEA. Granted that platforms like AliPay and WeChat Pay has already led the way, however Singtel’s telco access in many nations will also open many new doors in a efficient way.

In this post, I will share my views on how OCBC is still an awesome pick as a growth share for investors. Additionally, I will also be providing near term outlooks, entries and exits.

How should we trade or invest in OCBC Bank?

Short term outlook (Using Weekly Chart)

• Range Bound between $10.60 to $11.00 (Consistent)
• 9 Days Moving Average currently at $10.74 (Consistent)
• Heading towards $11.00 for small profits (Consistent)

Looking at the 2 support and resistance drawn for near term of 1-31 days, entry can be any where from $10.60 to $10.80. Near term wise, do exercise some restrain in terms of amount invested as there is still potential downside, otherwise, you might consider entering with 1000 shares long for a quick profit of $100 to $200. (after comms)

24 weeks outlook (Weekly Chart) 

• Price ranging around $10.60 to 11.17 to $11.77
• Supported by major horizontal support line of $10.40.
• Trade truce between US and China (Suspend October tariffs)
• US Democrats might be hurting relations with China due to dispute over Hong Kong situation
• China has warned that if they interfere with a law in place to review HK annually, relationship will be adversely affected
• Decent Dividend yields of around 3.8% at $10.68 per share.

Similar to last week’s analysis, support holding well and there is little chance for the two support at $10.6 and $10.4 to give way. Do enter as near to $10.6 as possible.

Author’s Call (Compared to 18 October)

• Enter with Caution in near term at around $10.60 to $10.7
• Exit with small profit targets (Reduced from $11.00 to $10.90)
• Enter for longer term only after recovery above $11.17 (fibo resistance)- maintained
• Rallying unlikely unless China and US have come to terms – maintained
• Long term Uptrend intact (Support is still holding well)
• Strong support at $10.4 (NAV = 1.056)
• 3rd Quarter report release on 5th November (Will update again)

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