OCBC released some strong results yesterday. The profits was great and it was up 29% in Q1 which by right the stock should gap up instead of gapping down.
https://www.straitstimes.com/business/companies-markets/ocbc-posts-29-rise-in-q1-profit-to-s111b-on-sharp-drop-in-allowances
However something peculiar changed, the stock gap down immediately in the morning and something went extremely wrong. Nobody had any clue on it but the price reflected this big change. It was after market hours that the news came out I believe. There was some loan book issues which caused the price to tank even though there was strong results.
http://www.businesstimes.com.sg/companies-markets/ocbc-sees-margin-pressure-on-indonesian-loan-book
Upon studying the chart again, there were multiple profit taking last week and the stock at the peak which sellers could have been waiting to sell short but just waiting for a perfect moment like this bad news to force it down. The lack of convincing buying in the minute chart were also clues that the stock was weak and soon after the selling became so fierce which price tanked furiously. Looking what's going to happen later today when market opened.
Ronald K - Market Psychologist - A Stock Market Opportunist
