As capital continues flowing into Singapore’s banking sector, OCBC (O39.SI) is starting to stand out as one of the stronger blue-chip trend continuation setups on the SGX. After spending several months consolidating between the $21.50 and $23.00 region, the stock has recently broken above the $24.00 level, signalling renewed buying momentum and a potential continuation of its longer-term uptrend. Supporting this move is a 1GT Bullish signal that remains active, highlighting that buyers continue to maintain control of the trend.

In this article, I break down OCBC using the One Good Trend (1GT) strategy, highlighting the key support and resistance levels that matter most right now, what the latest price action is telling us, and how traders can potentially participate in the move using Daily Leverage Certificates (DLCs) listed on SGX. As long as the $24.00 support level continues to hold, the bullish structure remains intact, and a sustained push toward $25.00 could signal that the next phase of the uptrend is already underway.

Overseas-Chinese Banking Corporation Limited (O39.SI)

Overseas-Chinese Banking Corporation Limited (O39.SI) is one of Singapore’s leading banking groups, with a strong presence across consumer banking, commercial banking, wealth management, and insurance through its Great Eastern franchise. As one of the three major Singapore banks, OCBC is widely regarded as a core blue-chip financial stock and a key beneficiary of Singapore’s resilient economic outlook.

From a technical perspective, OCBC continues to display a strong and well-structured uptrend, supported by a series of higher highs and higher lows over the past year.

After consolidating between the $21.50 and $22.50 region over the past few months, the stock has recently resumed its upward trajectory above the $22.50 level. 

Recently, it has successfully broken above the $24.00 level, signalling renewed buying momentum.

Importantly, the latest 1GT Bullish signal that appeared when the price broke above $22.50 remains intact and continues to play out. 

This is a constructive development, as bullish signals that emerge after a period of consolidation often indicate the start of a fresh trend leg higher rather than the end of an existing uptrend.

The stock's 20-day moving average (green line) continues to trend higher and remains comfortably above the 100-day moving average (red line). 

Meanwhile, the 100-day moving average continues to slope upward and remains well above the 200-day moving average (blue line), confirming that the broader long-term trend remains firmly bullish.

Price is now testing the $24.00 level, which previously served as resistance before the recent breakout. 

For traders adopting a more conservative approach, pullbacks that remain above the $24.00 level could offer opportunities to participate in the prevailing trend while maintaining a favourable risk-to-reward profile.

For those with a more aggressive stance, a sustained move toward the $25.00 resistance level could signal continued strength and potentially pave the way for the next leg higher.

Overall, with the 1GT Bullish signal still active, moving averages aligned to the upside, and price recently breaking above key resistance, OCBC remains technically strong. 

Until a red 1GT Bearish signal appears, the trend bias remains bullish, with the current setup suggesting that momentum may continue building from here.

So, how does one take a position in OCBC whereby you are able to reap more potential return to ride either the downside or upside further?

Those keen to ride on the short-term upward momentum in OCBC shares can consider using Daily Leverage Certificates (DLCs) traded on SGX to leverage on that move.

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

You can trade in both Long or Short directions and in SGD trading currency during Asian market hours, even when the US markets are closed.

Traders who are bullish can consider the OCBC 5xLongSG261217 (TUAW), while those who are bearish can consider the OCBC 5xShortSG261217 (MPOW) as shown below.

Singapore Stock DLCs

The Singapore Stock DLCs are designed to provide a fixed no. of times leverage performance on the underlying Singapore stock’s daily movement, based on a market-to-market close basis on the SGX. 

Using OCBC DLCs as an example, this means that for each 1% move in the underlying stock price, the respective DLC will move approximately 5% in the corresponding direction, before fees and costs.

These DLCs are listed and traded on the SGX just like any other stock from 9:00AM to 5:00PM, and can be accessed through your regular brokerage account. 

Visit https://dlc.socgen.com/en/home to find out more.  

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.

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This article was created in partnership with Societe Generale (Singapore branch). This advertisement has not been reviewed by the Monetary Authority of Singapore. The views expressed under this article represent the personal and independent views of the author and do not constitute investment advice. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see http://www.dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.