The daily chart of Capitaland is still showing a strong uptrend after breaking through a resistance of $2.16. Last Thursday, it broke through another resistance level, $2.35, and on Friday, the price softened a bit to a low of $2.38 before settling at $2.42. I think a good trade for Capitaland would be to go long on weakness next week, with a stop slightly below $2.35 and a target price of $2.70. This price target is not obvious from the daily chart, but have a look at it weekly chart below:
Here, you can see that for six times from Oct08 to end 2008, the price of Capitaland tried but failed to break through the $2.70 mark, except the one time in the first week of Jan09 in which the price of Capitaland broke through, but only to plunge dismally and to close below the open of the previous week's open, forming a bearish engulfing pattern.
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