Technical Pulse: City Development Ltd April 16, 2020 1027

City Development Ltd (SGX: C09) strong sell-off from 11.39-6.10 shows a clear bearish impulse and as such, the likelihood of a continued downfall is confirmed by today’s technicals :

  1. Rising wedge formation indicate a bearish reversal signal and in this case, City Development will continue its bearish downside.
  2. The bearish engulfing candle on Wednesday rejected the 38.2% Fibonacci level and the resistance level at 8.15, which is the previous low on June 2019.
  3. Before the strong bearish engulfing candle on Wednesday, the previous 3 candles has shown signs of slowing momentum after a bullish impulse candle on 7th
  4. Stochastic oscillator shows overbought crosses above the 80 overbought zone.
  5. The death cross is still valid as prices have been trending below both the 50 and 200 moving averages.

 

*Timeline of the trade should be between 1-3 weeks from the date issued.

 

CHART LEGENDS

Simple moving average

Red dotted line = 200 SMA

Blue dotted line = 50 SMA

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