Capitaland Mall Trust (SGX: C38U) has been on a range bound in a form of a larger corrective flat waves since the strong impulse down move in March 2020. To add on, the recent technical indicate a stronger downside to come:

1. The head and shoulder formation indicate a reversal after a minor upside of abc waves indicated in the chart.
2. Evening star formation on the right shoulder add on to the prospect of a convicted bearish downside.
3. The candle on Wednesday has broken strongly below the neckline resistance.
4. To add on, the candle has broken below the 50-day exponential moving average.
5. Mid to long term target will be the 88.6% Fibonacci retracement of wave A.

*Timeline of the trade is 3 weeks from the date issued.

CHART LEGENDS

Exponential moving average

Red dotted line = 200-day moving average

Blue dotted line = 50-day moving average