Executive Summary

DBS Group Holdings has surged past the critical $43 resistance level, signaling renewed strength and momentum for Southeast Asia’s largest bank. Supported by a steady uptrend and strong alignment across key moving averages, DBS is poised for further upside, with the next resistance at $46 in sight. Traders and investors alike are eyeing this breakout as a potential gateway to higher targets, while key support levels at $43 and $41 provide a safety net for those managing risk. Dive into the full analysis to uncover what lies ahead for this banking giant and how you can strategically position yourself for the journey.

DBS Group Holdings Ltd., Southeast Asia’s largest bank, is a leader in consumer banking, wealth management, and corporate banking services. With its robust presence in key Asian markets, DBS has consistently shown strong financial resilience and growth.

From a technical perspective, DBS is currently trading at $43.53, showing strong upward momentum after a recent breakout above the $43.00 resistance level.

The stock has been in a steady uptrend, supported by its 20-day moving average (green line), which is sloping upwards.

Both the 100-day moving average (red line) and the 200-day moving average (blue line) are trending higher, reinforcing a strong long-term bullish outlook.

The 1GT (Pro) Indicator has added further confidence, with a recent bullish signal (green) triggered when it broke the $40.00 psychological resistance.

This signal is still playing out as the stock continues to gain strength, validating the uptrend.

The ability of the stock to stay above the key support levels highlighted by the 1GT Indicator further reinforces the bullish sentiment.

On the upside, the next key resistance to watch is $46.00, where profit-taking may emerge.

A break above this level could pave the way for the stock to test higher targets in the coming weeks.

On the downside, immediate support lies at $43.00 which was originally the resistance, followed by a stronger support at $41.00, which was where we have been holding since Nov 2024.

For traders looking to enter, a more conservative approach would involve waiting for a potential pullback toward $43.00 to confirm support.

Alternatively, an aggressive entry could be considered at current levels, with the $46.00 target in mind. A stop loss could be placed below $41.00 to manage risk effectively, as a break below this level may signal a loss of momentum.

So, how does one take a position in DBS whereby you are able to reap more potential return to ride the uptrend further?

Those keen to ride on the short-term upward momentum in DBS shares can consider using warrants to leverage on that move.

The reason for that is that the warrants can potentially generate magnified returns for a given move in the underlying.

For example, the Warrant Selector tool estimates the price performance of warrants given an investor’s short-term price target of the underlying shares.

In this case, assume one thinks DBS can head another 5.3% higher toward the $46 resistance level, where one would stop being bullish on the share – shows that warrants over DBS will gain more than 6 times more than that, between 32.6% to 59.1% in three weeks.

One must note that the longer DBS shares take to head toward the profit-taking level, the smaller the gains in the warrants due to time decay.

For example, if DBS touched the $46 profit-taking/resistance level of $46 only in 12 weeks, the DBS warrants will now generate lesser gains of 12.6% to 14.6%.

Investors should therefore note that the holding period of the DBS warrants shown in the table should not be held beyond 12 weeks, as the gearing effect of the warrant would be eroded by the time decay over this period of time.

This can be confirmed on the Warrant Calculator tool, where by week 13 – approximately around 14 March 2025, where the call warrant VODW would now generate approximate returns of only +6.4% which doesn’t offer much gearing over DBS’ +5.5% returns, and call warrant PAMW – whose last trading date is 19 March 2025, will only be up 9%.

DBS call warrant VODW using the Warrant Calculator

DBS call warrant PAMW using the Warrant Calculator

Warrant investors should note that gearing works both ways, which means investors can suffer magnified losses in the event the investor’s view of which direction the stock price is heading is wrong. 

In this case, investors can use the Warrant Selector to also estimate potential losses on the warrant in the scenario that DBS reaches $41, a cut loss level suggested by Joey.

The sharing on how one can take a position using warrants has been contributed by Macquarie warrants Singapore who is the issuer of these warrants listed on SGX.

About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

More about Joey here

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Look forward to see you on the inside!

- Joey

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