A falling knife in the stock market refers to a stock that experiences a sharp decline and it may collapse > 50% from its breakout/pivotal point, b4 bottoming out.
If you use ichimoku, you must always ensure that, A) the price trades above the purple cloud; not inside or below it. B) Should the price trade inside or below the purple cloud with the Tenkan-Sen crosses below the Kijun-Sen and the Chikou-Span crosses below the share prices, run road and get out fast.
KepCorp — Double top breakout, major bearish trend reversal with 5-Wave down, interim TP S$9.98, next TP S$9.76
KepCorp had a hammer @ S$10.27 (-0.03, -0.3%) with 1.29m shares done on 8 Oct 2014 at 12.45pm.
Immediate support @ S$10.25, immediate resistance S$10.41.
Technical Analysis: History repeats itself. The future is but a repetition of the past..."The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun."
The dead cat bounce on KepCorp didn't materialize @ S$10.04, expect the corrective ABC-Wave to be extremely strong and powerful.
KepCorp's 2011 chart showed that the plunge was down S$5.12 or -42.2% (from high of S$12.14 to low of S$7.02), so using it to extrapolate a freefall of the same magnitude with the same timeframe is not impossible.
KepCorp (weekly) — Trading in a rectangle, Interim TP S$8.73, Next TP S$6.40