Kepland – Property Bubble bursting?

Trend: Downtrend , 20ma down, MacD below 0

Support: 3.51 (100ma close), 3.28 (200ma close)

Resistance: 3.69(20ma & 50ma), 3.80

Observations:
Candlestick – White candle with upper shadow resisted by 50ma
Histogram –Many G. No bullish divergence is seen.
RSI – Around 30% going towards oversold. No bullish divergence is seen.
Stochastic – No Bearish crossover yet. Around 75%.
Bollinger Band – Bounce off mid band.

Conclusion:
Kepland like the rest of properties counter, received concerns of the current property speculation bubble curb. The sentiment was worsening by interest rate increase by neighbouring countries which might force local banking scene to increase their rate also. Will Kepland survive this ordeal?

Looking at the trend, Kepland is showing downtrend movement. It had yet to form a lower high and there could be a possibility that it might form one at the current resistance level. This resistance level at 3.69 could be a strong resistance level as it confluences with 20 & 50ma. Past few days’ candlestick also gave hints of resistance with formation of upper shadows. Looking at the indicators, they have yet to show any bearish signs, hence, confirmation from the indicators are needed to show possible formation of lower high.

If lower high is being confirmed, it could seek 3.51 level as support. But due to the formation of lower high, downtrend could continue and lower low could be formed at next support of 3.28 level. Do take note that 100ma could also be a possible support.

What to watch out for this week:
1) Bearish signal from Histogram and Stochastic
2) Possible support from 100ma

Trading strategy to adapt right now:
- Initiate a short when there is bearish signal from candlestick or indicators
- For those whom still have long on Kepland, considerations to clear this position should be high as the next support could be quite far.

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