DBS – Will it have strong earnings report?

Trend: Uptrend, 20ma up, Macd above 0

Support: 14.22 (20ma & 100ma), 14.00 (50ma & 200ma)

Resistance: 14.84, 15.30

Observations
Candlestick – Bullish Harami
Histogram – Many Rs. No Bearish divergence is seen.
RSI – Around 60%. No Bearish divergence is seen.
Stochastic –Bullish crossover is already seen.
Bollinger Band – Closer to mid band.

Conclusion:
Over the weekend, numerous European banks failed to pass their stress test which could trigger another wave of fear in the market. But this news was struck off as it did little impact to the market. Hence DBS was spared from heavy selling. Upcoming next is DBS’s reporting on its earnings. Will it show good earnings?
DBS’s trend remains uptrend despite recent retracement in price. Higher low could be forming at 14.22 support level as this support level has confluence of both 20 & 100ma. The past few days candlestick might have indicated that higher low could have been formed as it triggered a bullish harami yesterday. What is lacking now is a confirmation of the bullish harami. In term of indicators, stochastic had already triggered a bullish cross but last confirmation is needed from MacD histogram.
If the higher low is being confirmed, DBS might climb towards 14.84 resistance level. As it is up trending right now, there is a high possibility of breaking the immediate resistance and reach next resistance of 15.30 level.
Any downside side now could be limited till 14.00 level as 14.00 level shows multiple confluence of 50ma and 200ma.
In conclusion, DBS might continue its uptrend but what is lacking right now is a confirmation of higher low from the price action. Any downside now could be getting more limited as it is trading very closely to a range of strong support.

What to watch out for this week:
1) Confirmation of bullish signal.
2) Resistance and breaking of 14.84 level

Trading strategy to adapt right now:
- Long when there is confirmation of bullish signal.

*Disclaimer applies