SATS Ltd (SGX: S58) bearish downside has acted according to our analysis dated on 26^th August. Recent technical also add on to the probability of further strong downside:

1. Since the sell down occurs after the shooting star formation on 25^th August, the stock has been staying below $3.00 psychological resistance level. Although consolidation is seen, the stock’s lacking of bullish momentum has formed a smaller head and shoulder formation within the larger triangle. Indicating further downside.
2. Additionally, the bearish Marobozu is a confirmation candle to the previous period’s shooting star indicative in the chart. Also, the Marobozu has closed below the 50-day moving average.
3. The overall trend is still bearish as prices has been trending below the 200 and 50-day moving average.

*Timeline of the trade is 3 weeks from the date issued.

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average