Valuetronics Holdings (SGX: BN2) short recommendation entered into a stop loss after prices edged higher in Mid-April 2020.  The rally continued into late April but when the stock entered  May, prices began to display a lack of bullish momentum. Based on the technicals, the stock will resume its downtrend:

1. Rising wedge formation signifies a drop in momentum and it is a key bearish continuation pattern.
2. Double top formation is seen at 0.650 psychological level and the double top formation rejects the key 161.8% expansion level of 0.435-0.530 to 0.490.
3. On the 2^nd top, the evening star formation is a strong bearish reversal signal.
4. RSI divergence shows a lack of momentum, thus, a reversal is imminent.

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

*Should price revert and break 0.690 for three consecutive periods, the stock will revert its bull and test 0.750.  

CHART LEGENDS

Moving average

Red dotted line = 200 SMA

Blue dotted line = 50 SMA