ComfortDelGro (SGX: C52) recovery in mid-March proved to be a corrective as price still struggles to close above the psychological top at $1.60. Based on the technicals, we expect another round of sell pressure:

1. The false breakout last Friday from $1.36 was a sign of relief and was considered a potential double bottom similar to the rebound experienced in Mid-March 2020.
2. The bearish engulfing candle rejects the resistance top at $1.65 and 127.2% extension level of $1.60-$1.36. Indicating weakness in the stock.
3. A potential double top is now formed.

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

* Should price breaks the resistance at $1.65, the next price level the stock will test is at $1.86-$1.90

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average