Sheng Siong Group (SGX: OV8) bullish upside has been going strong but recent technicals suggest that the stock may enter into a short term correction to its nearest support before continuing its rally:

1. The Elliott wave count indicate that the primary 3^rd wave has yet to complete as the smaller sub-minute wave from 12^th June to present day has complete wave i-iii. Wave iv is still on its way.
2. Price action indicate a potential tops in place with RSI showing overbought. As such, the correction is inevitable.
3. The bearish shooting star indicate a bearish reversal in place. Therefore the probability of the correction is high.

* This trade call is only valid for 2 weeks

* The sell call on Sheng Shiong is to take advantage of the correction in place, the stock overall trend is still a bullish trend.

* Should the stock reverse break below 1.55. Then the whole sub-wave count will be invalidated.

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average