Jardine Cycle and Carriage: 20 May 2014, Tuesday, 10.24am Singapore Time
Chart courtesy of Chartnexus.com
Attached above is the daily chart of Jardine Cycle and Carriage.
It is often a very important stock that is used to help control the Straits Times Index for its ease of moving the index. It is also often a true litmus indicator of Singapore's economy: using cars to measure how well the economy is doing (price of cars and price of Certificate of Entitlement of cars, COE).
Refer to the chart above: the entire ascent of 2012 and 2013 for Jardine C&C was used for large scale distribution. It was merely gradual and limited in range. Anything above the DOUBLE BLUE LINE SUPPORTS of the large ascending wedge is the bull zone and anything below is the bear zone.
In mid-2013, Jardine Cycle and Carriage broke down the large bearish distributional wedge to signal end of distribution. It was impulsive, with impulsed high volumes and achieved a significant price mark-down within a short time frame. This makes the validity of the signal of intention by the market (Smart Monies and Big Boys) highly reliable.
Jardine Cycle and Carriage, one of the strongest component of STI, is no longer used to help support the Straits Times Index. With much greater impulsive selling volumes than any buying volumes, Jardine C&C, together with STI, looks set to fall even more and resume a large long term downwave.
If Jardine falls, more often than not, so will Straits Times Index and stocks and equities across the board.
In such a market, only 5% stocks in the board will move northwards while 95% stocks suffer pressure from funds to get out, exit and roll down the hill. With reference to the price structure of Jardine Cycle and Carriage, the entire price satisfaction of the escape wave has been realised and the rebound has ended.
"Sell in May and go away" has high possibility to extend to "Sell in June, July, August, September and October and go away".
As per previously mentioned with a few months worth of daily Funds Flow Analysis (FFA), stocks worldwide are doing escape wave rebounds to just merely confirm a TRANSITION TO BEAR MARKET; Jardine Cycle and Carriage is just one example that is consistent with the majority of the markets.
In conclusion, when even the 5-star general is retreating and going south, the soldiers will follow.
Donovan Norfolk Ang Technical Rating:
Bearish
Short/Sell off
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