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Monthly charts of SGX, Ascendas Reit; fallen out of major patterns

SGX (ticker: S68.si) monthly chart from 2010 to 08 October 2018

  1. Symmetrical triangle pattern from 2011.
  2. Technical analysis concept states that symmetrical triangles can break in any direction.
  3. Since price broke down, we can confirm that triangle was a distribution pattern. Note that this is a very big triangle with a 6-year duration.
  4. Price broke down supporting trend line then did a pullback; support became resistance.
  5. TA concept predicts that price could move as much as the widest distance of the triangle (h) following a break. Do not expect to reach this potential price target in short time since we are observing the monthly time frame.

Since this chart uses monthly candles, there is an important level which is the month opening price. As long as price trades below this level, the candle remains red which means bullish prospects will not be met. If price stays in the red, there is possibility to go lower.

SGX monthly chart from 2010 to 08 October 2018

SGX monthly chart from 2010 to 08 October 2018 | Screencap from Tradingview.com

 

Ascendas Reit (A17U.si) monthly chart from 2008 to 08 October 2018

  1. Fallen out of 17-month distribution pattern right at resistance.
  2. Many similarities between Ascendas Reit chart and the SGX chart at top.
  3. Instead of projecting target price, there are many horizontal levels to offer potential support.
Ascendas Reit monthly chart from 2008 to 08 October 2018

Ascendas Reit monthly chart from 2008 to 08 October 2018 | Screencap from Tradingview.com

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Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“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.

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