CAPITALAND

Having marked an all-time high at 8.75 in April, Capitaland started a correction. Three weeks ago, prices reached a longer-term up trendline and the gap support at 7.55. At this key-support, prices posted a bullish harami candle pattern and bounced slightly. A move above the major resistance at 8.20 would offer the chance of another test of the peak at 8.75.

Further resistance below that mark is located at 8.00, where the down trendline is coming in, which stopped the last recovery rally. A sustained decline below 7.40 on the other hand would turn the mid-term bias bearish and indicate further losses towards around 6.50-7.05.

Strategy:

Traders may await a close above 8.00 or 8.20 before initiating a long-entry. Short-positions are worth considering for aggressive acting traders in case of a drop below 7.40 with a protective stop just above 7.80.