Keppel REIT (SGX: K71U) A potential bounce to retest the resistance zone at 1.03-1.06 in the current downtrend as:   

1. The price broke out of the main downtrend channel it was trading in on 11 November after the recent selldown retested the swing low support formed at 0.895 in late October 2020 to create a double bottom confluent with the support zone of 0.860-0.930.
2. The Moving Average Convergence Divergence (MACD) technical indicator is currently displaying bullish momentum with the sustained crossover of MACD line over the Signal line.
3. The price could reach the 1.04 level in the resistance zone at 1.03-1.06 which is confluent with the downtrend resistance line and 50% Fibonacci retracement level using the recent swing low of 0.860 and recent swing high of 1.23.

*Expected timeline of the trade is 13 weeks from the date of report issuance.

CHART LEGEND

Red box = Resistance zone

Green box = Support zone