If Singapore is a financial hub and the banking stocks is a reflection of the economy, then the charts are clearly showing the significant resistance ahead.

I expect tough times ahead in 2012.

UOB with support at $16.85 and resistance at $17.21

OCBC with support at $8.03 and resistance at $8.28

DBS with support at $11.77 and resistance at $12.21

OCBC has been falling.

On the Ichimoku Chart, the stock has been bearish since August. with 4 gap down over the last 1 month.

In fact, the last 3 trading days, has seen it gap down again; suggesting that the fall is now being accelerated.

I think this will be a great setup for a ‘falling knife’. What’s the catalyst to go ‘Long’ now?

1. Wilmar, in the commodity sector. A darling that has went 3 folds since the lows in 2009. It was also included in the STI Index last year.

2. OCBC. One of the 3 major banks in Singapore and I believe, is part of the STI Index as well.

Let’s take a look at Wilmar first.

From the chart, we can see that Wilmar has retraced from its high of  about $7.2 and is now reaching its long term support at around $6.45

We can also see that the Tenkan sen and Kijun sen has crossed with the price still holding above the kumo support. With the kumo support so thin, I think the bearish trend will have a higher chance to continue. We can also see that the leading kumo is also going to twist; a suggestion that the bullish trend is changing.

Next, we take a look at OCBC. One of the 3 ‘darling’ banks in Singapore. The others being UOB and DBS.

Compared to Wilmar, OCBC situation seems to be more bearish.

1. We can see from the ‘vertical line’ that marks Jan 4 this year to the second ‘vertical line’ which marks the last day of trading for January 2010. Throughout January 2010, OCBC has more down days than up; breaking support levels as it goes.

2. So,where are we now with respect to OCBC?

- It has already have a bearish cross from Tenkan sen and Kijun sen.

- The leading kumo has also turned; suggesting a bearish outlook.

- It is now trading near the bottom of the kumo. Any price within the kumo is considered trendless. But, with its trading time at$ 8.28 at lunch time, I think there is very little chance of it going above $8.35

- In other words, after its gap down and rebound, OCBC is set to make a lower high.

Confirmation with Tenkan sen – Kijun sen crossing each other.

The Chikou Span has also start to cut the price line on the way down.