Despite UMS Holdings (SGX: 558) recovery, the technical indicates still point to a resumption of the bearish trend:

1. We expect a bearish 5 wave after the completion of wave 4 out of 5 waves.
2. Candlestick formation indicates a confirmation of the evening star after a strong bearish candle down on Tuesday. With prices closing below 50% retracement level of wave 3 and 161.8% of wave A from 0.655-0.550.
3. The evening star formation candle has rejected the 200 Moving average line, signify a weakness of the bull passing.
4. Moving averages indicate the 50 moving average line closing in towards the 200 moving average line. Stochastic Oscillator indicate an overbought cross over. 

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

CHART LEGENDS

Simple moving average

Red dotted line = 200 SMA

Blue dotted line = 50 SMA