$OCBC Bank(O39.SI)$ shares suffered its biggest one-day percentage fall since April 2025, falling a 5.9% tumble.
Separately, Citi downgraded OCBC to "sell" on 6 October with a $27.50 target, citing flat 3Q earnings and a softer CET1 ratio(13.3%, down 70bps q-o-q) as risks to the stock's re-rating.
However, not all brokers share this view, with some maintaining a more positive outlook and continuing to rank OCBC among their top picks
*This article is paid for by Macquarie Warrants Singapore. Binni’s view does not represent that of Macquarie’s
Citi downgraded OCBC to "sell" on 6 October with a $27.50 target, flagging flat 3Q earnings and a softer CET1 ratio (13.3%, down 70bps q-o-q) as risks to the stock's re-rating. Citi also pointed out OCBC's P/E has run up the most among local banks this year, leaving less buffer if sentiment turns. UOB Kay Hian disagrees, keeping OCBC as a top pick on 22% H1 earnings growth and wealth management strength. (Source: https://www.businesstimes.com.sg/companies-markets/rhb-optimistic-about-singapore-banks-even-ocbc-sheds-s8-billion-value)
Weekly Chart: Uptrend Still Intact, but a Correction Is Underway
Zooming out on the weekly chart, OCBC’s broader uptrend since 2021 remains structurally intact. The stock has gone through several sizeable corrections along the way, and today’s pullback appears to be following a similar pattern.
The most recent correction prior to this one, in mid-2026, saw OCBC fall approximately 7.66% from its high. The current pullback is tracking a similar magnitude so far. This does not necessarily mean price will rebound from here — but it does suggest this zone ($30.00-30.30) may offer temporary support, consistent with the size of the last correction.
Looking further back, OCBC’s two largest corrections in this uptrend occurred in 2022 (−17.28%) and 2025 (−19.97%). These historical drawdowns offer a useful reference for how deep a correction could extend if selling pressure persists. Applying a similar 17–20% correction from the recent high would project OCBC toward the $26 to $27 zone — possible support levels.
Using Structured Warrants to Trade This Setup
A call warrant gains in value when OCBC rises; a put warrant gains when OCBC falls.
Bullish — If the Current Pullback Holds as Temporary Support
A trader with a bullish view could consider a call warrant $OCBC Bk MB eCW270226(JXRW.SI)$ https://warrants.com.sg/tools/livematrix/JXRW) under either scenario: if OCBC stabilises at $30.00-30.30, with the current correction comparable in size to the mid-2026 pullback, or if price extends lower first and finds support in the $26–27 zone before recovering.
Bearish — If the Correction Extends Toward the $26-27 Zone
A trader who believes the current downgrade-driven selling could deepen into a correction similar in magnitude to 2022 or 2025 — projecting toward the $26 to $27 support zone — might consider a put warrant $OCBC Bk MB ePW270930(JBXW.SI)$ https://warrants.com.sg/tools/livematrix/JBXW ) as one way to express that view.
Note: The featured warrants are quoted with tight spreads and high liquidity. They are also known as trending warrants.
Structured warrants are short-term trading instruments that magnify both gains and losses. Their value is affected by the underlying price, time to expiry, and implied volatility.
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