City Developments Ltd forms bearish "Flag" chart pattern
Jul 24, 2020
Recognia has detected a "Flag (Bearish)" chart pattern formed on City Developments Ltd (C09:SGX-ST). This bearish signal indicates that the stock price may fall from the close of 8.260 to the range of 7.450 - 7.600. The pattern formed over 8 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to be resuming a sharp decline after taking a brief pause. A bearish Flag pattern occurs during a dynamic market decline, representing a brief pause as the market "catches its breath" before running off again in the same direction. The pattern consists of two parallel trend lines, often sloping upward against the prevailing downtrend, and is confirmed when the price breaks down through the lower boundary to resume the decline.
This bearish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.
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Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.
Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.
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