Jardine Strategic (SGX: J37) bullish rebound is disappointing despite the price breakout of the falling wedge last October 2019. Based on the technicals, the stock will continue its bearish downside:
- Price has been testing the 38.2% Fibonacci retracement level thrice, which coincide with a major resistance level at 33.18. This signifies that the stock may form a potential triple top formation.
- Rising wedge formation represents a strong bearish correction.
- Dark cloud cover formation below the 38.2% retracement level is another indication a major reversal is approaching.
- Stochastic is shows an overbought cross.
- Death cross formation is still valid as prices are still trending below the 200 SMA.
*Timeline of the trade should be between 1-3 weeks from the date issued.
CHART LEGENDS
Blue dotted line = 50 Periods Moving Average
Red dotted line = 200 Periods Moving Average
