Following up from previous potential breakout call, OCBC HAVE broken the 9.80 CRITICAL resistance levels TODAY on News of its takeover of Wing Hang Bank. Can consider accumulating above 9.82 for more upside to 10.00, 10.30 then 10.60. This news could remove any overhang that has been suppressing this counter since Jan.
News - 30 July 2014
-- OCBC: Set for a full takeover of Wing Hang Bank after securing 97.5% stake at the close of its hkd125/shs offer. Bank will proceed to delist Wing Hang.
CEO highlights process of integrating the ops and businesses of Wing Hang with OCBC will now pick up speed. With Wing Hang purchase, OCBC will now control 88 branches in Greater China region, including those at Pearl River Delta, the world's manufacturing hub. Offer px is 1.77x P/B of Wing Hang, and acquisition is expected to be accretive to OCBC's EPS and ROE by 2017.
CEO highlights process of integrating the ops and businesses of Wing Hang with OCBC will now pick up speed. With Wing Hang purchase, OCBC will now control 88 branches in Greater China region, including those at Pearl River Delta, the world's manufacturing hub. Offer px is 1.77x P/B of Wing Hang, and acquisition is expected to be accretive to OCBC's EPS and ROE by 2017.
Sent: Tuesday, June 17, 2014 12:57 PM
Subject: **************************** OCBC: Bullish Ascending Triangle spotted, Resistance at 9.80 critical..... Watchlist. Price 9.68
Subject: **************************** OCBC: Bullish Ascending Triangle spotted, Resistance at 9.80 critical..... Watchlist. Price 9.68
OCBC has been forming higher lows since Feb this year with a Ascending Triangle pattern with resistance at 9.80. Any breakout above this level can be a positive to take it up further to 10.00 then 10.30. Watch list for any such take off. This can lead to the next upside consolidation phase again. Currently supported above 9.60 for more than a month, can consider accumulating on dips above this support.
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