Will DBS hit psychological S$30 high again?

DBS has witnessed its share price rise in recent years from 2016 till June 2018 with a strong intermediate five-wave impulse move. Prices reached a high of S$31.18 during the period. Using wave analysis, DBS had a strong sub-third wave extension starting from December 2016 till March 2018. In other words, the strong bullish optimism is displayed throughout 2017 with the wave (3) extension as the technical proof. Normally, when either one of the motives waves is extended, the other two motives waves will display equal or almost the same length distance. Looking at the whole wave structure, wave (1) and (5) is similar and the alternation rule for the corrective wave is displayed as well, with wave (2) as a complex double-three wave and wave (4) in a simple corrective wave.

The bullish optimism came to an end when DBS failed to stay elevated above the psychological high of S$30 by forming a bearish engulfing after hitting the high at S$31.18 and a bearish divergence between wave (3) and (5), which signalled the end of the impulse intermediate five-wave movement. Conventional rules state that after a five-wave movement, the following of three-wave correction will commence, which we observe the sub-wave (A), (B), (C) sliding towards S$22.55 followed by a rebound.

However, a new impulse upward move was short-lived as DBS failed to clear above S$28.50 and formed a weekly bearish gravestone doji, signalling a bearish reversal ahead. Prices then made way for another wave down but halted at the S$24.00 region and subsequently ranged throughout the second half of 2019, forming a five sub-wave symmetrical triangle formation of wave (B), which was a set-up for another downside to complete wave (C). March 2020 then saw the biggest decline in a short period where prices broke major support level at S$22.50 and subsequently closed below S$20 and ended at S$17.22, which is also the 161.8 per cent extension of wave W.