On our 20th July report, we mention that the next rebound will likely be at 2,500 region and as the STI closes at 2,529 last Thursday, there is a possibility that Monday we will experience a slight rebound. However, as the STI has ended with a lower low, we are seeing a downtrend for now especially it breaks out of the ascending channel 2 weeks ago.
Moving forward, the mid-term out look based on the technicals suggest that the downward trajectory is still ongoing with prices testing 2,400 regions.
The safety net of $20.00 has been breached and it is submerging right under the psychological support level of $20.00. Although prices remain well within the support zone as highlighted in the chart, the fact that it gaps down on last Thursday when market open indicate a strong selling pressure. To add on the bearish sentiment, prices has been making a series of lower high and lower lows which indicate a renewed downtrend going forward.
Moving forward, the stock may attempt to rise back above the $20.00 region but the recovery will be seen as a correction unless prices swiftly closes above $21.00 within the next 6-8 periods.
As we have mention on our stocks update report on 20th July, Fraser Centrepoint Trust will likely head lower to test the support zone 1 at $2.28-$2.21 despite a reversal at $2.30 with a morning star formation. However, the rising momentum is slow and is seen like a correction, last Thursday bearish Engulfing candle wipe out 50% of the gains. As such, the likelihood of Fraser Centrepoint trust testing the support zone one has increased.
Should the support zone 1 become invalidated, the next potential rebound will be at zone 2 ($1.93-$2.00).
SATS’s downside move has move according to our expectation based on our report on 23rd July. As price edge lower on the first half of the trading session last Thursday, the buying quickly emerged on the 2nd half of the session which closes the candle as a bullish hammer/pinbar. Although the divergence shown on the Relative Strength Index is significant, the potential upside is corrective in nature as the 5-wave Triangle is still ongoing. The last leg of potential wave E is going to test the resistance zone at $2.96-$3.06.
The only hope that the stock resuming it’s bullish upside is price invalidate the top resistance zone at $3.92-$3.38.
The inverted head and shoulder which we mention on our report dated 24th July is still intact despite the strong selling last Thursday. As the last hour of trading, prices manage to recover back to the right shoulder support level at $8.17.
The only crucial factor which will invalidate the bullish outlook is should prices breaks below the support level at $7.98, then the next price target will be at the at $7.55.
The formation of a “Kangaroo tail” has set Rex international into a renewed selling pressure with the stock setting its course onto a 5 sub-wave to form wave C. As such, we expect prices to fall beyond the support level at $0.160 and find its potential support at $0.146-$0.139.
Zooming out and look at the larger picture, the recovery after reaching its support zone may be limited and the overall price action suggest that the stock will be ranging for a prolong period of time as prices will have a hard time breaching above $0.200.
We had a strong conviction on a short bullish upside on 30th July after a bullish engulfing candle was formed. However, the formation of inverted hammer after the engulfing sparks a no confident of the bullish upside and instead, we believe that Yangzijiang will continue to slide further to test the support at $0.865, which confluence with the 61.8% Fibonacci retracement level before a rebound.
The consolidation of candles on last Wednesday and Thursday after the strong bullish candle broke out of the falling wedge which we mention on our report on 29th July. In regards to the consolidation, we are expecting further consolidation between $40.72 and $41.33 before prices set to rally once again to test the neckline resistance at $46.34 of the potential double bottom.
However, should prices fell below the psychological support level at $40.00 in the next 3 periods, the stock will test the lower levels at $35.71 to $33.26.
The bearish outlook based on our report on the 28th of July is likely to be invalidated after the evening star formation fails to close below the resistance turned support level at $2.08. To add on, last Thursday strong selling sees prices rebounded at $2.08 after a smaller divergence and oversold above the RSI 60 level indicate that the buying momentum is still in the game. As such, we are still positive on Mapletree Logistic Trust hitting our target price at $2.25 based on our report on 17th of June
