DBS - 06 Feb 2025

DBS Stock Chart Analysis (Price Action & Volume-Based)

Timeframe: Daily (1D)
Exchange: SGX
Last Close: SGD 44.32 (as of February 6, 2025)

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1️⃣ Trend Direction & Market Structure

• Overall Trend: Uptrend (higher highs and higher lows)
• Long-Term Structure: A clear bull trend since early 2023, with steady higher lows and breakout points.
• Key Phases:
  • Accumulation (July - October 2022): Price was consolidating in the SGD 26 - 30 range before a breakout.
  • Expansion (November 2022 - July 2023): Sharp rise with price steadily trending upwards.
  • Corrections (August - November 2023): Pullbacks to SGD 30 - 31 area before resuming the uptrend.
  • Parabolic Move (Late 2024 - February 2025): Price surged towards SGD 45.44, showing strong momentum.

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2️⃣ Support & Resistance Levels

• Key Support:

  • SGD 38.50 - 39.70 (Prior resistance turned support, volume-backed pullbacks)
  • SGD 35.35 - 36.00 (Confirmed by multiple bounces)
  • SGD 30.50 - 31.50 (Long-term demand zone, previous consolidation range)

• Key Resistance:

  • SGD 45.44 (Current peak and new high)
  • SGD 43.02 - 44.95 (Recent resistance cluster before breaking out)
  • SGD 39.70 - 40.00 (Prior strong resistance zone before breaking above)

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3️⃣ Candlestick Patterns & Volume Analysis

• Significant Candlestick Formations:

  • Engulfing Patterns (July 2023 & October 2023): Marked trend reversals at key support zones.
  • Doji & Indecision Candles (November 2023 & December 2023): Showed signs of trend exhaustion before breakouts.
  • Hammer (January 2024 @ SGD 38.50): Bullish reversal confirmed with rising volume.
  • Bearish Hanging Man (February 2025 @ SGD 45.44): Possible reversal signal if confirmed with selling pressure.

• Volume Interpretation:

  • Volume spikes during breakouts (August 2023, December 2023, January 2025).
  • Drying volume on pullbacks, indicating no strong selling pressure.
  • Climax Volume (Near SGD 45.44): Potential exhaustion at highs, signaling a need for caution.

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4️⃣ Trade Setups & Risk Management

✅ Pullback Buy Setup

• Buy Zone: SGD 38.50 - 39.70 (strong support with demand)
• Stop-Loss: Below SGD 37.50 (previous support level)
• Target: SGD 45.00 - 46.00
• Risk-Reward Ratio: ~1:3

✅ Breakout Play

• Entry: Above SGD 45.50 (confirmation of breakout)
• Stop-Loss: Below SGD 44.00 (recent resistance)
• Target: SGD 48.00 - 50.00
• Risk-Reward Ratio: ~1:2

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⚠️ Risk Management

• Use tight stops on breakout trades to avoid fake breakouts.
• Wait for confirmation candles on pullbacks before entering long.
• Monitor volume spikes at resistance for potential reversals.

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Conclusion:

• Strong Uptrend but facing resistance near SGD 45.44.
• Look for pullbacks to SGD 38.50 - 39.70 for better entries.
• Breakout traders should wait for volume confirmation above SGD 45.50.
• Watch for exhaustion signals if volume spikes but price fails to move higher.

📌 Final Thought:

This stock remains bullish, but managing risk near SGD 45.44 resistance is crucial. If a correction occurs, buyers should wait for support zones to enter.

Disclaimer: This analysis is for educational purposes only and should not be considered investment advice. Trading involves significant risk of loss and you should consult with a financial advisor before making any investment decisions.

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