ST Engineering (SGX: S63) technicals indicate downside lurking around the resistance level and the stock has yet to break new high since July 2019:

1. The regular flat wave analysis shows that the B wave rejection at 4.35 and price closing below 4.30 fulfil the 90% rule of the wave count.
2. The bearish pin bar rejection of 4.35 on Wednesday points to strong bearish momentum approaching.
3. The strong bearish candle on Thursday confirms the bearish pin bar. In turn, it forms into an evening star formation.
4. Looking closer, the clusters of candles circled in the chart has closing prices below 4.31, indicate a bullish weakness looming.
5. Double top formation at the resistance of 4.35 is strong.
6. Stochastic oscillator shows overbought crosses, which indicate an impending sell-off.

*Timeline of the trade should be between 1-3 weeks from the date issued.

CHART LEGENDS

Red dotted line = 200 SMA

Blue dotted line = 50 SMA