Over the past 2 days, the S&P 500 has rallied strongly. The STI followed suit after marginally breaking long term lows. This move up by the STI has taken Capitaland up with it. Short-term momentum has been decisively strong, closing above the 200 period moving average for the 1 hour charts.
Price is moving angling away from the 30 and 50 period average quickly, indicating the possibility of a fast move in play. We recommend going long in the first hour of trading if Capitaland continues to rally. Price targets are at S$2.26 and S$2.35. Recommended stop is around S$2.00 to S$2.02.
City Dev
City Dev has also risen sharply with the STI over the past few days of trading. Today City Dev gapped up on the open before rallying higher for the day. Breakaway gapssuch as these are indicative of strong buying momentum.
It has also angled away sharply from the 30 and 50 period averages and tested the200 period. We recommend going long on close above S$4.93 with stop at S$4.70.
This would be a bet that current momentum will be continuing upward. If a sharpmove is truly in play, price should not retrace to S$4.70. There is resistance at S$5.50 and we recommend taking profits slightly under thatlevel, at S$5.48.
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