Samudera Shipping Line Ltd (SGX: S56) Price is likely to head lower after hitting the downtrend channel resistance as:   

1. The combined formation of a dark cloud cover and hanging man candlestick pattern on 8 & 9 September at the confluence of downtrend channel resistance and 61.8% Fibonacci retracement level resistance at 1.10 provides a bearish signal.
2. The Moving Average Convergence Divergence (MACD) technical indicator also points towards a bearish downside as it is displaying weak momentum with the formation of a lower high.
3. Price could reach support zone 1 at 0.940-0.980 with the ichimoku cloud providing support before heading towards support zone 2 at 0.870-0.900 thereafter, with the previous horizontal resistance level providing support.

*Expected timeline of the trade is 13 weeks from the date of report issuance.

CHART LEGEND

Red box = Resistance zone

Green box = Support zone

Blue line = Conversion line

Red line = Base line

Green area = Ichimoku cloud