Singapore Exchange Ltd (SGX: S68) had a strong bearish runaway gap on the 28th of May, The selling should persist until the well-supported $8.00 level. However, recent technicals suggest that this psychological support may be broken soon.
- SGX broke out of the falling wedge on Tuesday 30th June together with the RSI bullish divergence. However, things start to turn when the stock exhibit a dark cloud cover formation at 38.2% Fibonacci retracement level of the wedge, signifying a weakness in the bull.
- Bearish death crosses occurred on two occasions when the 22-day moving average crossed below the 50-day moving averages and subsequently below the 200-day moving average.
- Prices are still trending below all three moving averages with the bearish dark cloud cover closing below the 22-day moving average on Wednesday 1st July 2020.
*Timeline of the trade should be between 1-3 weeks from the date issued.
*The stock’s potential rebound should happen at 1.13% extension level of $7.97-10.73.
CHART LEGENDS
Moving average
Red dotted line = 200 periods Moving average
Blue dotted line = 50 periods Moving average
Green dotted line = 22 periods Moving average
