Capitaland C31 and Sembcorp U96 in multiple time frame charts
Multiple time frame charts for Capitaland and Sembcorp look bearish. Both exhibit confluence of resistance with bearish chart pattern. Both are also supported so wait for confirmation. In this volatile market, better to get timing right than try to front run any break that could turn out to be false.
Capitaland (ticker C31.si)
This monthly candlestick (top) and line chart from 2002 has 3 features:
- Long trend line support from mid-2004 to present.
- A symmetrical triangle pattern from 2009 to present.
- Horizontal range parked at top of triangle.
If price breaks below the range at the pink dotted line, price action could be read as a triple top. This is specially obvious in the line chart. Breaking the pink dotted line could be read as breaking neckline and therefore confirms the triple top as a reversal pattern. If price action breaks above triple top, then it is a regular consolidation range that favours uptrend as continuation.
This is Capitaland weekly chart from May 2015 to present. Blue trend lines and the pink neckline can be found in the previous monthly chart. I added 2 horizontal lines to further define the horizontal range that is parked at top of triangle.
Most people would not object to call this a horizontal range but it would not be a straightforward potential triple top. So individuals who anticipate a reversal move should really wait for price to fall out of bottom as a confirmation.
Sembcorp (ticker U96.si)
This monthly candlestick (top) and line chart from May 2005 to present has 2 features:
- A support – resistance zone at around $3.50 region.
- A rising wedge parked under resistance.
The rising wedge was there since 2 years and with that resistance zone above, becomes a high probability reversal pattern. A rising wedge itself has a bearish bias.
Short term traders could continue to trade the wedge as a range by buying low and selling high without aspiring for a breakout trade. However watch this 3M chart (each candle shows price action for 1 quarter/3 months) closely.
Previous two candles for Q3 and Q4 2017 shows that despite price pushing to 3.50 region, each quarter ended up closing to the low. Although it is still early March, the current candlestick already looks the same. Price action like this means that bears are in control although they have not delivered the trend line penetrating blow yet. This also means that in conjunction with the resistance on top and negative implication of a rising wedge, Sembcorp has high probability for a down move. Keep eyes on how price closes by end of March.
Articles on high probability setups
- 5 price features that set up a good reversal trade
- Elements of a high probability reversal setup appear in AUDJPY
- USDCAD high probability setup with multiple elements
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.