In my previous post, I mentioned that Genting was going to continue its decline, and currently it is below 1.50. The STI Index has closed on a new low, below the previous low of 2720. What does this mean? It means that there is a good chance of seeing new lows, either with or without a consolidation phase first. One tell-tale sign is the weakness in major sectors like the financials and O&M. Let’s take a look at DBS, one of the 3 financial giants.
After a classic evening star reversal early this month, DBS has gone down to make a new 20-month low, providing several good shorting opportunities (can you spot them?) along the way. The worse part is, there seems to be no immediate support level. This means that the markdown has potentially a lot of room to go, since there will be no psychological level for the bulls to rally. I would be keeping an eye out for more opportunities to go short.