Technically, City Developments — which closed at $7.75 on Nov 20 — has recovered to the top of what could be a base formation at the confluence of a resistance at $7.89, and its 100-day moving average at $7.82. Prices have moved up by $1.55 since the low of $6.20 on Nov 2. However, quarterly momentum is testing a thrice tested resistance level that coincides with its equilibrium line. A breakout should materialise in due course. If so, this counter is likely to break out of its base setting an upside of $8.44. Any retreat in the week of Nov 23–27 is likely to be relatively benign, with support at $7.45.
See: Impacted by Covid-19, City Developments Limited focused on long-term: analysts
See also: STI may retreat on strong overbought pressures but REIT Index may break out
CapitaLand ($3.05) has shown greater relative strength compared to the rest of the developers. It has broken above its 200-day moving average, currently at $2.93. Its 50- and 100-day moving averages appear poised for a positive cross. Volume continues to expand on white candle days, and quarterly momentum continues to strengthen. Its immediate resistance is at $3.23. A successful break above $3.23 would provide the impetus for prices to test $3.50.
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As a result, the STI, now at 2,813, should continue to make headway. First though, it may pause for a much-needed consolidation. As the index approaches 2,891, the bottom of a breakaway gap, and an area that coincided with increased selling back in March, resistance is likely to appear. On the other hand, the 50- and 100-day moving averages appear poised for a positive cross, and quarterly momentum remains strong. These different pressures are likely to lend themselves to a sideways consolidation, with the 200-day moving average now providing support at 2,632.
