Mapletree Logistics Trust (SGX: M44U): Bullish momentum came to an end on 21^st February after the counter entered a 5-subwave corrective wave of ‘A’ after the rebound took place on 23^rd March 2020. Based on the technicals, the incoming sell down of the trust will take the form of the following:

1. The ‘B’ corrective wave being marked by two phases. Firstly, the rebound from 1.20-1.68 is a strong upside rebound with the second phase ended with a slowing momentum shown by the rising wedge and as such, the slowing momentum represents a weakening of the bullish demand.
2. The shooting star formation on Monday saw prices close below the 78.6% retracement level of wave A and price action suggests that 1.83 has been tested across 4 periods, which suggest a weak bull beyond the immediate resistance level of 1.83.
3. The trust will enter into a 5-sub wave to form wave ‘C’ leg and the potential rebound will be at 1.30.
4. Bearish divergence has been marked for the past 4 periods.
5. There is a strong potential that the 50 moving average will cross below the 200 moving average line, forming a potential death cross. If a death cross is formed, the downtrend will be inevitable.

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

*Should price rebound at 1.60 or 1.49, there is a strong possibility that price might rebound and test 88.6% retracement level of wave C. Also, there is a possibility of the Trust swiftly gap up toward 88.6% of wave A before forming a 5 sub-wave down move.

CHART LEGENDS

Moving average

Red dotted line = 200 SMA

Blue dotted line = 50 SMA