Wednesday, April 15, 2009
Capitaland - Double bottom
i was looking at the chart of Capitaland and wondering what to name the title of this post. I knew that the price was going to break through $3.00 (OK, not knew, but chances are high that it would break through that price soon). I don't really want to call it 'breakout' again as that would be a bit boring. And suddenly I saw it! A double bottom on the weekly chart. And with this realisation, i can now project a price target for Capitaland once it breaks out of the $3.00 level. The projection is computed by measuring the price difference between the pivot (the $3.00 level hit in early 2009) and the line joining the bottoms (which is slightly less than $1.90 since the second bottom is at $1.70, but never mind. i'll use $1.90 to be a bit conservative), giving $1.10 and then adding this to $3.00, resulting in a price target of $4.10. And what a coincidence! $4.10 is remarkably close to a major resistance level of $4.13. My suggestion for an entry into Capitaland would be similar to my suggestion for COSCOCORP: buy upon price breaking through $3.00 on high volume.
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