Last week, it looked as if DBS was headed towards the $5 mark after closing below the low of $6.63 level reached in Apr 03. But the price rebounded strongly last week. So for now, it looks like the bears are not able to push the price of DBS below $6.63. The long term trend is still down as show graphically by the middle line in the Bollingerbands and by the slope of the MACD lines, but the momentum of the decline is decreasing (as shown by the rising green bars of the MACD-Histogram). When such mixed signals are present, i would not be too aggressive in taking either a long or a short position. But for those who may be familiar with candle stick charting, it does appear that a hammer is starting to form in Mar09. (A hammer is a candlestick formation with a short upper body and a long lower shadow. For it to be called a hammer, the length of the lower shadow must be twice the length of the upper body). This being a monthly chart, we need to wait till end of the month to confirm if this would be a hammer. If it turns out to be, this would be a very strong reversal signal. It would be an even stronger signal if DBS in MAR09 closes above 7.49.
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