Technical Pulse: Yangzijiang Shipbuilding Holdings Ltd February 25, 2020 436


Yangzijiang (SGX: BS6) has experienced a series of bullish recovery since August 2019. However, based on the weakening momentum shown on the chart, possible downside is to be expected:

  • The stock had a strong sell down in January 2020 after price broke the lower bound of the rising wedge and closed at $0.92.
  • Bearish flag formation suggests downtrend in the near term.
  • Candlestick price action indicates a weakening bullish sentiment, with the formation of the evening star formation capped by the 50.0% of the Fibonacci retracement level as its resistance.
  • The evening star formation closed below the middle-term 50 SMA price levels.
  • Presence of a strong bearish candle is attempting to break the lower bound the of flag which could fuel downward pressure.
  • The death cross remains valid as prices trend below the 200 SMA.
  • Stochastic is showing an overbought crossover, which indicates a possible end to the recent bullish momentum.


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



Red dotted line = 200 SMA

Blue dotted line = 50 SMA

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