Technical Pulse: SBS Transit Ltd May 29, 2019 404

Current Sentiment: Bearish

Support 1: 4.05                       Resistance 1: 3.88

Support 2: 4.25                       Resistance 1: 3.70

SBS bullish run has come to a halt and may be entering into a bearish correction soon. The clear indication is the potential head and shoulder formation. Although the neckline resistance is not broken to complete the formation of the head and shoulder, the various technical factors point to the stock likely heading lower.

  • Strong Bearish engulfing on 15th may 2019 closes below 61.8% Fib retracement, which also happen to be the right shoulder formation.
  • Prices has been trending below the 50 and 22 day period simple moving average. Which means that price will most likely trend lower in the next few periods.


*Should the market traded above 3.88 for 5 consecutive days, possible the head and shoulder may fail.


*Likewise, should the market rally and break the support level 1, the whole head and shoulder will be invalidated as the right shoulder will be compromise.



Red line = 200 period moving average

Blue line = 50 period moving average

Green line  = 22 period moving average

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