CapitaLand Retail China Trust (SGX: AU8U) has been range bound since the recovery in March 2020 sell down but recent technical indicate a bullish upside.

1. The trust has formed a potential Adam and Eve double bottom where by the rounding bottom on the second bottom known as the eve’s bottom is an indication of a high probability success double bottom reversal.
2. Ascending triangle formation is a strong indication of a bullish breakout.
3. To add on, the resistance level at $1.31 has tested more than 4 times. A strong indication of a weakening resistance level.
4. The 50-day moving average has edge upward and is on the verge of crossing above the 200-day moving average, forming a potential bullish golden cross. To add on, prices has recently close above the 200-day moving average for consecutive 2 periods. If prices continue to close above the 200-day moving average, then the probability of a bullish upside will increase.

*Timeline of the trade is 3 weeks from the date issued.

CHART LEGENDS

Moving Average

Red dotted line = 200-day moving average

Blue dotted line = 50-day moving average