Technical Pulse: Jardine Cycle & Carriage Ltd May 20, 2020 998


Jardine Cycle & Carriage (SGX: C07) The second wave of the downtrend has been going on since prices broke support level at $28.69 on 28 Feb 2020. The stock will be heading for another round of sell down after it broke out of the rising wedge formation on 27th April 2020, signalling a continuation of the downtrend. However, the stock’s selling momentum began to take a breather when the prices started going into a range-bound movement entering May. Based on the technicals, the stock is heading for a rebound before resuming its sell-off:

  1. The stock exhibited a double-bottom at the lower bound of the range and rejected the 61.8% Fibonacci retracement level of $18.21 – $21.83.
  2. On the 2nd bottom, the Morning star candlestick formation at 61.8% indicates a strong upward pressure going forward at the lower bound of the Bollinger band.
  3. The 61.8% retracement level shows a unique bottoming as both bottoms at price level of $19.59 shows price constantly closed above the 61.8% level which indicates a strong buying momentum, especially at the first bottom.
  4. Increased volume was seen on 19th of May 2020, reinforcing the strong buying interest.


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

*The stock is still on a major downtrend and the buy call is to take advantage of the corrective nature of.

* Should price breaks below the 61.8% Fibonacci level, the next support $18.21



Moving average

Red dotted line = Upper Bollinger Bands

Blue dotted line = Middle Bollinger bands

Green dotted line = Lower Bollinger Bands


Standard Deviation = 2

Periods = 21

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