Trade of the Day - CapitaLand Ascendas REIT (SGX: A17U)
1 Apr 2024Trade of the Day
CapitaLand Ascendas REIT (SGX: A17U)
(Current Price: S$2.78) – TECHNICAL BUY
Buy price: S$2.78 Stop loss: S$2.70 (-2.88%)
Take profit 1: S$2.91 (+4.68%) Take profit 2: S$2.97 (+6.83%)
(1),(2) & (3): CapitaLand Ascendas REIT found support upon a backtest of a descending broadening wedge breakout, and created a higher high above the S$2.77 swing high level formed in March 2024. This followed a double bottom formation earlier at the S$2.65 level, which provides a bullish reversal signal.
(4): The Moving Average Convergence Divergence (MACD) technical indicator supports the bullish view with bullish divergence and increasing momentum signals showing a higher low formed while the price formed a double bottom earlier on.
We expect the price to rebound towards Take profit level 1 at S$2.91 to retest a previous horizontal swing high resistance level in January 2024.
Thereafter, the price is expected to trade higher towards Take profit level 2 at S$2.97 to retest a higher previous horizontal swing high resistance level in December 2023.
The expected timeline of the trade is 2-12 weeks from the date of report issuance
About the author
Zane Aw
Technical Analyst
PSR
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).
About the author
Zane Aw
Technical Analyst
PSR
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).