CapitaCommercial Trust - Bullish piercing pattern with tweezers bottom suggests likely near term rebound

CapitaCommercial Trust may see more upside in the days ahead following the double formation of a tweezers bottom and the bullish piercing pattern at the 1.5-month uptrend line on heavy volume.

With both the RSI and MACD indicators’ respective 3-month uptrend lines still intact, coupled with the golden cross of the 50-day MA above the 200-day MA a few sessions ago, they seem to suggest that the upside momentum is still going strong.

We expect the rebound to meet an initial resistance at $1.00 (2-year downtrend line), breaking which, the next key resistance is at $1.09 (support-turned-resistance level in Jan ‘08)

Immediate support is meanwhile pegged at $0.87 (resistance-turned-support level), ahead of $0.80 (3-month uptrend line).

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