Sino Biopharmaceutical (HK: 1177) will make one more bearish move downwards based on the technical below:

1. The stock has completed its regular flat corrective wave and is most likely to form a double three of a lesser degree. Current wave action suggests that the stock has completed the wave (x) at 12.00 psychological resistance level.
2. Rising wedge formation indicates that the bullish momentum is slowing.
3. The bullish hammer on last Thursday was considered failed when the supposed bullish candle was met with rejection and formed into a bearish hammer instead at the supply area and 78.6% of the Fibonacci retracement level of wave X.

*The technical call is valid only for 3 weeks.

*12.50 remains a strong resistance.

CHART LEGENDS

Simple Moving Averages

Red dotted line = 200 SMA

Blue dotted line = 50 SMA