Trade of the Day

CapitaLand Investment Ltd (SGX: 9CI)

(Current Price: S$3.34) – TECHNICAL BUY

Buy price: S$3.34     Stop loss: S$3.22   

Take profit 1: S$3.52     Take profit 2: S$3.70

The price formed a bullish hammer candlestick upon retest of the S$3.30 swing low in March this year, which could signal for a double bottom and bearish-to-bullish trend reversal. The Relative Strength Index (RSI) technical indicator is displaying bullish divergence with a higher low formed as price made a lower low into the support.

The price could head to the first resistance level at S$3.52 which was a recent swing high resistance in May. It could then head to the next resistance level at S$3.70 confluent with a previous horizontal support level it broke down of in May.

Expected timeline of the trade is 4-12 weeks from the date of report issuance.

Our research team has a fundamental recommendation of “ACCUMULATE” with a target price of S$4.12.