To The Moon

My recent trade on OCBC Bank (039) reflects a short-term, tactical approach based on intraday price action and resistance levels. I sold my position at 22.50, which turned out to be the day’s high, and later bought it back at 22.20. This trade was based on my expectation that the stock would open strong but face selling pressure by mid-morning. My next plan is to sell again closer to 23.00 if the stock retests higher resistance levels in the future.

To begin with, OCBC has been in a clear uptrend over the past few months. The chart shows a consistent pattern of higher highs and higher lows, supported by rising moving averages such as EMA5, EMA10, EMA20, and EMA30. This indicates strong bullish momentum and suggests that the broader trend remains intact. However, even in strong uptrends, short-term pullbacks are normal, especially when prices approach resistance.

On the day of my trade, I anticipated that OCBC would open strong. This expectation was based on the prior trend strength and overall positive sentiment in the banking sector. Stocks that are trending upward often attract buyers at the open, as traders try to catch continuation moves. This creates early upward momentum during the first part of the trading session.

$OCBC Bank(O39.SI)$  

However, I also expected that this initial strength would not last throughout the morning. One key reason was that the stock was already trading near a short-term resistance zone around 22.50. Since this level had not been broken decisively before, I believed that sellers would step in once the price approached it again. Resistance levels often act as areas where supply exceeds demand, leading to price rejection.

As expected, the stock opened strong and pushed up toward 22.50. When it reached this level, I decided to sell. Selling at 22.50 allowed me to exit at the highest price of the day, capturing maximum value from the intraday move. This decision was based on the idea of selling into strength rather than waiting and risking a pullback.

Another reason for selling at 22.50 was the likelihood of profit-taking. Traders who had bought at lower prices would naturally look to lock in gains when the stock approached resistance. This creates selling pressure, which can cause the price to reverse or consolidate. Additionally, short-term traders may also initiate sell positions at resistance, further increasing downward pressure.

After selling, I monitored the price action closely. As anticipated, the stock did not break above 22.50 and instead started to pull back. This confirmed my view that the resistance level was holding and that the early strength was temporary.

I then looked for an opportunity to re-enter the stock at a lower price. My buyback at 22.20 was based on the belief that the pullback was only short-term and that the overall uptrend remained intact. The 22.20 level appeared to act as a short-term support zone, making it a reasonable entry point.

Buying back at 22.20 allowed me to improve my position by reducing my average cost while staying invested in the upward trend. This type of strategy—selling near resistance and buying near support—is a way to take advantage of intraday price fluctuations without changing the overall bullish outlook.

The difference between my selling price (22.50) and buying price (22.20) also represents a successful short-term trade. By capturing this 30-cent range, I was able to generate additional returns beyond simply holding the stock.

Looking ahead, my next target is to sell at 23.00. While the stock did not reach 23.00 on this particular day, I believe it may test this level in the future if the uptrend continues. The 23.00 level is a round number and a psychological resistance, where many traders are likely to place sell orders.

However, I will approach this target with flexibility. If the stock approaches 23.00 with strong momentum and high volume, it could indicate a breakout, in which case I may hold longer instead of selling immediately. On the other hand, if price action shows signs of weakness near that level, I will likely execute my plan and sell.

Risk management remains a key part of my strategy. While this trade worked well, there is always uncertainty in the market. Prices do not always behave as expected, and it is important to manage risk through careful position sizing and disciplined decision-making.

In addition, emotional discipline is crucial. It can be tempting to hold out for higher prices or to panic during pullbacks. However, by sticking to a clear plan—selling at resistance and buying at support—I can make more consistent and rational decisions.

In conclusion, my trade on OCBC Bank was based on a clear understanding of intraday behavior and technical levels. I sold at 22.50, which was the day’s high and a key resistance level, and bought back at 22.20 after the expected pullback. This allowed me to capture a short-term price movement while remaining aligned with the broader uptrend. Moving forward, I will continue to monitor the stock with a target of selling near 23.00, while staying flexible and responsive to market conditions

Find out more here: The 2026 ETF Masterclass: Building Smarter Portfolios