At a cursory glance, the STI is still pretty strong, having had 2 legs up and forming a price cluster after surpassing the prior swing high.

However, a more astute scrutiny unveils potential new sellers stepping in, judging by the sudden large increase in supply volume.

Banks like DBS and OCBC are also exhibiting similar signs, but since both are advancing steadily in a tight channel, the buyers are still controlling the market, and I will continue to hold my long positions.

I will be trailing my stops to protect my profits, and watching for further signs of proverbial cracking. For those who desire a more detailed understanding of how this behavioral analysis works, there might still be a few seats left for our free sharing session next Tuesday.

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Here are some of our trade calls which we shared in the private forum about 3 weeks back, covering the major banking stocks. Both stocks exhibited a similar chart pattern, giving us a low risk entry with a lot of upside. This trade would be good for a medium-term holding period, suitable for those who do not have the time to watch the screens the whole day on hourly/minute charts.

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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.

DBS - are the banks leading the decline

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.