SATS Ltd (SGX: S58) unexpected strong upside has been fulfilled based on our previous report dated 21^st August. However, as we have mention in that report that the strong resistance zone is a targeted sell-zone and based on the technical, we have arrived sooner than expected:

1. SATS is still in a dominant bearish impulse and the 5-wave Elliott symmetrical triangle is the corrective pattern. Now as prices approaches the projected price target of wave E at #3.15-$3.20. We are convicted of a return of the bear.
2. Bearish shooting star has rejected the 161.8% extension level of the previous cup and handle formation and 61.8% retracement level of C-D.
3. Prices also fails to close beyond the psychological price level at $3.20.

*Timeline of the trade is 2 weeks from the date issued.

*There remain a possibility that the stock may rebound from the resistance turned support level at $3.00-$2.94. Should that happen, we will see a rally to test the higher resistance zone at $3.31-$3.40

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average