Today's Daily Stock report features DBS Bank Limited (DBS), a Singaporean multinational banking and financial services corporation. Originally named The Development Bank of Singapore, it adopted the abbreviated name "DBS" in 2003 to reflect its global role. It is one of the "Big Three" banks in Singapore, alongside Oversea-Chinese Banking Corporation (OVCHY) and United Overseas Bank (UOVEY). DBS is the largest bank in Southeast Asia by assets and holds dominant positions in consumer banking, treasury markets, securities brokerage, as well as equity and debt fundraising across the region, including China, Hong Kong, Taiwan, and Indonesia. As keen watchers of the Singapore stock exchange and the 30 Straits Times Index constituents, which have been showing great relative strength over the past year, DBS is no stranger to SIA. It is said that a picture tells a thousand words, and the attached point and figure (pnf) chart of the iShares MSCI Singapore ETF (EWS) certainly falls in this category. In this chart, we have highlighted several important standouts, but the first, of course, is the green X with an arrow pointing to it. This is in relation to the SIA International Equity ETF report overlay tool, which indicates to SIA Practitioners that this ETF—and, by extension, the Singapore market—is finally turning favored within this report, having been unfavored for many years dating back to 2013. This is occurring within the context of a multi-year long-term breakout. In the chart of the EWS ETF, we can see that the breakout is significant, with shares now trading at $22.74, having recently broken out of a 7-year spread triple top. We have drawn a green line to represent the first level of support at $20.86. We have also added another zone of support that levels to the $18.53 mark, where this breakout represents just under 10 years of prior resistance.
Armed with this intelligence, we put on our sleuth hat and begin digging for ideas in the Singapore market, which is easy on the SIAChart platform. We head over to the reports tab, where we find the SIA International ADR Report. Combing through this report, we find DBS Bank, which has moved up 35 spots over the past month and 58 positions over the past quarter, now entering the Favored Zone of this valuable SIA report. We have also added the matrix position chart above that monitors DBS's matrix position through time, where both the rise into the SIA Favored Zone and the 3-year duration of time (black double arrow) that has passed since its shares have been favored are clearly seen. The next stage of the analysis, therefore, turns to the point and figure chart of DBS Bank, where we find a technically strong chart that continues to produce continuous point and figure double tops, especially notable past the $98.11 level, a psychological whole number ($100) level that it has had to challenge for most of 2024 until it finally broke through and tested it as support several times before marching forward to its current trading level of $124.97. Near-term support can now be identified first at the 3-box reversal levels of $117.25 and $110.49, with multi-year support now registering at $98.11 (highlighted in green). Resistance can be calculated using a vertical pnf count at the $132.04 level, with more at $142.92. DBS is a member of the SIA Favored Sector: Financial Services and currently holds a perfect SMAX score of 10 out of 10, which further supports its outperformance characteristics against other asset classes in addition to its outperformance within the SIA International ADR Index Report.
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