Hongkong Land - Breakout from key resistance suggests further upside

Key resistance taken out. Hongkong Land could see further upside after successfully taking out the US$3.90 key supportturned- resistance level. Incidentally, the last time the counter closed above this key level was nearly a year ago.

Renewed upside momentum. With the MACD indicator showing signs of turning up again, it suggests that the upside momentum could be building up again.

Near term correction likely. However, as the RSI is still indicating a heavily overbought signal, we could see the stock retesting the US$3.90 key level again. A successful retest at this support could confirm and form a base for the next leg of recovery.

Initial resistance at US$4.38. We expect the stock to test the initial resistance at US$4.38 (minor peaks in Jul ‘08), breaking which, the next resistance is at US$4.55 (gap zone in Jun ‘08).

Immediate support at US$3.90. Below the key US$3.90 support, the next support could be found at S$3.74 (resistance-turnedsupport level).

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