Capitaland closed $3.68 on 9th Jul 2010 and it is currently the laggard among the property stocks as compared with CityDev and Kepland.
Technically, it has broken out of a falling wedge ( falling wedge is trend reversed following a downtrend ) at $3.59 and has seen back-test the $3.59 level and managed to find support there. Presently, it is on a rebound to re-test the $3.80 resistance level which it failed to break after the breakout from the falling wedge formation. The breaking of the $3.80 resistance will find the next 2 resistance levels at $3.95 and $4.10.
The short-term GMMA lines has shown sign of compressing with the 3d line cutting up the 5d line. However, the long-term GMMA lines still fanning out in a flat trend. If the short-term GMMA lines compress which lead to long term GMMA lines also compressing then the next price movement would be a powerful once both set of GMMA lines expand.
A point to note is the $3.59 support level, if price breakdown at this level, this would void the falling wedge formation. As such, the downside for the moment is $3.59 whereas the upside is at $3.80, $3.95 and $4.10.
