Technical Pulse: Mapletree Logistics Trust May 5, 2020 705


Mapletree Logistics Trust (SGX: M44U): Bullish momentum came to an end on 21st February after the counter entered a 5-subwave corrective wave of ‘A’ after the rebound took place on 23rd 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.



Moving average

Red dotted line = 200 SMA

Blue dotted line = 50 SMA

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