Frencken Group Ltd (SGX: E28) The sub-ending diagonal wave from July till September has caused the stock to enter into a larger corrective ABC wave, and the technicals indicate that corrective selling has some more room before a rebound restarts the next bullish impulse wave:
- Despite strong bullish candle seen on 11th and 12th November, the failure to clear the resistance zone at $2.48-$2.47 sent the stock lower. Judging from the selling momentum, the support zone 1 at $2.06-$2.11 is likely to be invalidated.
- From the Fibonacci extension of wave (A), the wave (C) target rebound is likely at the support zone 2 region, at $1.96.
- Ichimoku is showing a clear three bearish death cross, hence support for zone 2’s rebound is not strong. Chances are that prices are likely to evolve into a double three corrective pattern WXY wave. In this case, support zone 3 will be the likely contender for the rebound.
*Expected timeline of the trade is 15 weeks from the date of report issuance.
Ichimoku Kinko Hyo
Red dotted line = 26 periods Kijun-Sen
Blue dotted line = 9 Periods Tenkan-Sen
Green Line B= 52 periods Senkou Span B
Pink Line A = 26 periods Senkou Span A
Black line = 26 periods Chikou Span. Lagging line