Date: September 17, 2024
Broker: CGS-CIMB Securities
Company Overview
City Developments Limited (CDL) is a leading real estate company based in Singapore. The company provides real estate services, including renting, buying, and selling residential, commercial, and hospitality properties. CDL also offers consulting services to its clients.
Recent Stock Performance
City Developments Ltd is currently experiencing a bullish rebound at the bottom of its consolidative range. The last recorded price for the stock was 5.45 SGD.
Technical Analysis
The technical outlook for CDL is optimistic, with several indicators supporting a potential upward movement in the stock price. The following key factors were highlighted:
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Inverted Head and Shoulders Formation: CDL’s price action indicates a potential inverted head and shoulders pattern, a classic bullish reversal signal.
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Strong Breakout: The stock had a significant breakout above a small consolidative range, supported by strong volume.
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Ichimoku Indicators: Two out of three bullish crossovers have been observed, alongside a bullish Kumo twist, signaling continued upward momentum.
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Positive Momentum: The MACD histogram has turned positive, indicating growing bullish momentum. Furthermore, the 23-period ROC (Rate of Change) has risen above the zero line, which is another bullish sign.
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Stochastic Oscillator: The oscillator is currently above the 50-level, suggesting strengthening bullish momentum in the market.
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Directional Movement Index (DMI): The index confirms bullish strength, with the stock’s volume expanding healthily.
Support and Resistance Levels
- Entry Prices: 5.45 SGD, 5.20 SGD, and 5.14 SGD.
- Support Levels:
- First support: 5.23 SGD
- Second support: 5.10 SGD
- Resistance Levels:
- First resistance: 5.53 SGD
- Second resistance: 6.05 SGD
- Stop Loss: 4.96 SGD
Target Prices
The target prices for CDL’s stock are set at multiple levels:
- Target 1: 5.81 SGD
- Target 2: 6.05 SGD
- Target 3: 6.60 SGD
- Target 4: 7.00 SGD
Conclusion
With multiple bullish signals in play, including technical indicators like MACD, Ichimoku, and Stochastic Oscillator, CDL is positioned for a continued bullish run. Investors should monitor the stock closely for price action around key support and resistance levels.
