SGX is still trading within a long term Broaden Descending Wedge (Green). In a medium term, SGX has formed a Descending Triangle (Blue) in 3 months. Currently SGX is testing the Descending Triangle’s resistance (at about $7.596) but this resistance is quite challenging to be broken as it is also combination of 20D MA, 50D MA and 23.6% Fibonacci Retracement Level). Also take note that “Lower High, Lower Low” pattern have been formed on the chart and SGX looks bearish in the long term. Upside potential is capped at about $7.85 which is also the 200D MA. 200D MA line has also started the down trend and that is another reason to be concerned. My price target for the breakdown remain to be the same, which is $6.30 or lower for the time being.
- Post author:Marubozu
- Post published:July 18, 2010
- Post category:Singapore Exchange (SGX)
- Post comments:0 Comments