ComfortDelGro - Strong rebound suggests more near-term upside

- ComfortDelgro could climb higher in the days ahead after staging a fairly strong rebound from the $1.26 key support – one that provided the base for 3 previous rebounds.

- With both the RSI and Stochastic indicators turning up sharply from their respective oversold regions and the MACD indicator looking to make a bullish crossover soon, they further support our view that the growing upside momentum for this counter.

- We expect the rebound to meet an initial resistance at $1.35 (minor peaks in mid May ’09 and early Jun ‘09), breaking which, the next key resistance is at $1.42 (Apr ’09 high)

- Beyond the $1.26 key support level, we expect subsequent support at $1.19 (Nov ’08 low).

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