Apart from the support at $1.57, bullish divergence appears to be formed on the RSI and Stochastic with relative to the price level. The rebound from $1.57 support or bullish divergence could lead to 3 resistance levels at $1.64, $1.75 and $1.88. Depending on the strength of the rebound, normally couple with high volume and that will determine which level of resistance it can be reached.
Fundamentally, CMA has a NAV of $1.50 and now trading at 1.06x above NAV. CMA has also low level of debt with billion worth of free cash in its balance sheet. Recent news of winning the bid for Jurong East side JV with Capitaland and CapitaMall Trust has strengthen CMA assets size too. It has also applied for secondary listing in HKex and awaiting for approval. As CMA is mainly targeted in commercial properties in China, the recent property market tightening measures has minimum impact on it ( as mostly targeted towards residential properties ). CMA so far has little bad news to justify the continue falling share price and this makes the valuation becomes attractive fundamentally.
Technically, with a down side at $1.57, upside potentially at $1.88, the rewards to risk ratio with reference to $1.59, is 14.5x.
A note since listing till now, CMA lowest price level was $1.57.
