Another knee jerk reaction offers an excellent buying opportunity. We are witnessing 2 knee jerk reactions here.
Firstly, the sell down in US, which appears irrational and now the decline in the STI. The decline in the DOW is just a knee jerk reaction to the gradual build up in prices ahead of the FOMC .
We believe that the index will rebound over the next 1-2 weeks back to the 13800-13900 level. The same pattern exists for the STI, with a possibility of a stronger rebound. In this aspect, we think the likelihood of a move towards 3700-3750 is high.
Recommend buying on today's weakness. The same stocks that we featured 2 days ago offers excellent buying levels.
Support for DBS is pushed up to$21.00-21.10
1. DBS- Support at $21.00-21.10.
2. SGX- support at $13.90-14.00
3. COSCO- Support at $6.50
4. Yangsijiang- Support at $2.02-2.04
5. China Hongxing- support at $0.975
6. Rickers Maritime- Defensive yield play which is currently displaying relative strength. Support $1.26
7. Ausgroup- Support at $1.71.
8. SPH- Support at $4.46.
9. China XLX- Support at $1.10.
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