SGX: OCBC, Yanlord & Citydev

This post is in response to Douglas' email:

Did an analysis on OCBC, Yanlord and Citydex to see if they are suitable counters for going on the LONG side with a mid to long time framework. Apparently all these counters have broken out of their Uptrend Channels and MacD bearish divergences are currently in play. 2 possible scenarios may happen with a MacD bearish divergence in play:

1) The counter starts trading in a range bound, sideway fashion; or
2) The counter starts plunging in price

Both scenarios seem highly likely now until we have further confirmation i.e. a break of the support provided by 20-Day Moving Average.

*It is also interesting to note that these counters on the weekly chart shows a 4g1r signal on the MacD and overbought on the Stochastics indicators.

Bottom line: Stay at the sidelines and observe for now until there are clearly signals. The current conditions favour more of a SHORT rather than a LONG position.