Capitaland closed $3.34 on 1st April 2011 rebounded from intra-day low of $3.08 on 17th Mar 2011. In the process from the period 11th Feb 2011 till now, Capitaland potentially is forming an inverted head & shoulder formation with the neckline at the $3.40 level. Both the left shoulder and head have been formed. Currently in the process of forming the right shoulder. Should such formation is formed and breaking out with volume from the neckline, the potential target would be $3.69; a previous support level from the period 23rd Nov 2011 to 27th Jan 2011 before breaking down when funds outflow from Singapore market coupling with concern of China tightening measures, Middle east unrest and the latest Japan natural disaster.
Technically, both the 14d Stochastic and RSI indicators are turning up signaling the potential to at least hit the neckline of $3.40.
A breakdown at $3.26 would invalidate the inverted head & shoulder formation. At $3.34, downside $3.26 and upside $3.69, this would serve a reward to risk ratio of 4.375x or an upside of 10.48% and a downside of 2.40%
