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 :
- Rising wedge formation indicate a bearish reversal signal and in this case, City Development will continue its bearish downside.
- 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.
- 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
- Stochastic oscillator shows overbought crosses above the 80 overbought zone.
- 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
