CityDev has retracted from an intra-day high of $7.36 on 6th Jan 09 till an intra-day low of $5.75 on 16th Jan 09, pulling back almost 22%. Looking at the Stochastic signal, CityDev could be in a short-term temporary bottoming phase. RSI rebound from the 20% level on 12th Jan 09 and appears to be heading towards the 50% level. This could suggest a near-term rebound is on the way. The strength of the rebound would have to depend on how the DI pair fares. Currently DI pair still negatively spaced but with ADX below 20 level, the downside should be limited for the time being. A cut up of DI+ couples with ADX moving towards 40 level could signal the rebound is heading to re-test the $7.00 level. Immediate support is at the $5.70 level and if that support failed to hold, downside would be at $5.24 level. At 16th Jan 09 close price of $5.79, upside of $7.00 and down side of $5.24, the reward/risk ratio would be
($7.00 - $5.79) / ($5.79 - $5.24)
= 2.2x
