In summary: my stance remains the same on how DBS price will play out. Remember, I’m trading base on probability and not certainty. if you have shorted it too, may the odds be in our favour.
weekly chart – dbs & sti correlation
The white line reflects DBS stock price. As you can see from the chart, DBS’s price is indefinitely correlated to the index. Hence, this is why I chose STI as my reference point for holding my short position.
weekly chart – past correction
Base on prior economic crises; Asian financial, Dot-com, SARS-outbreak, and Housing crisis (GFC), it is found that the average corrective price actions that each crisis made are 3 times. This doesn’t act as a guarantee but a gauge.
weekly chart – current price
Current price action on the weekly chart, STI seems to be making its second correction under current economical conditions. With a