Technical Pulse: CapitaLand Investment Ltd November 21, 2022 130

 

CapitaLand Investment Ltd (SGX: 9CI) A potential pullback of the recent rally to retest the support zones at S$3.25-3.40 and S$3.00-3.10:   

 

  1. The price formed a bearish reversal evening star pattern on 18 November at the S$3.60-3.80 resistance zone which is confluent with a 61.8% Fibonacci retracement level at S$3.68 using the recent swing high of S$4.10 and swing low of S$2.99, a bearish signal.
  2. The Moving Average Convergence Divergence (MACD) technical indicator is currently displaying decreasing momentum coupled with the Relative Strength Index (RSI) technical indicator reaching a reading of 70, an overbought level.
  3. The price could retest the support zone 1 at S$3.25-3.40 to fill a price gap, and a continuation of the bearish momentum could see a retest of support zone 2 at S$3.00-3.10, which is the year-low support level.

Our institutional research has a fundamental recommendation of ACCUMULATE and target price of S$4.12.

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

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

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About the author

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Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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