Hongkong Land - Potential correction at key gap zone resistance level

- After rallying by more than 32% over the last 2 weeks, Hongkong Land is showing signs of fatigue with the formation of a spinning top and doji candlestick just shy of the key gap zone resistance level at US$3.43.

- With the RSI showing signs of falling out of the overbought region and the ROC indicator signaling a sharp bearish reversal high up in the positive territory, they seem to suggest that the uptrend momentum is waning and correction may be inevitable.

- We expect the stock to find initial support at US$3.20-US$3.25 (minor gap in Sep ‘08), breaking which, we see the next support at US$2.86 (resistance-turned-support level and 3-month uptrend line)

- Immediate resistance is pegged at US$3.70 (support-turned-resistance level), ahead of $3.93 (support-turned-resistance level).

Sponsored Links