Ho Bee – Laggard among property plays?

Trend: Downtrend, 20ma down, MacD below 0

Support: 1.41, 1.34

Resistance: 1.48 (20ma close), 1.56, 1.62 (50 & 200ma close)

Observations:
Candlestick – Small white candle with little upper shadow testing 20ma.
Histogram –Many G, No bullish divergence.
RSI – Slightly aboe 50%. Bullish divergence is seen.
Stochastic – Bullish crossover around 40%.
Bollinger Band – Close to mid band.

Conclusion:
Ho Bee caught my interest as the big brothers in the property sector starts to turn bullish. As the mid cap of the sector, it could be lagging behind the big brother in the sector. Hence, will there be a chance that Ho Bee will do the catching up?
Ho Bee’s price movement still remains downtrend and is still trading below 20ma. But there is bullish divergence seen in the RSI which indicates the downtrend is actually weakening. Currently, it is trading closer to 1.48 resistance level which confluences with 20ma. But if this resistance level breakout, the possible upside could be testing 1.56 or 1.62 as resistance. 1.62 will be a stronger resistance level to watch out for.
On the other hand, since it is a downtrend stock, there is also a possibility that the downtrend could continue. To confirm further downside, it must break 1.34 as support to form a lower low. 1.41 support level will give an earlier indication of the possible continuation of downtrend is it fails to hold.
Currently, the indicators are still on the bullish side as there are no signs of bearishness yet. Hence, with slight conflicting signals, it will be better to be cautiously bullish on Ho Bee.
What to watch out for this week:
1) Breakout of 1.48 with high volume
2) Breakdown of 1.41 support

Trading strategy to adapt right now:
- Go long only when 1.48 resistance breaks with high volume.
- Go short when 1.34 support breaks with high volume.

*Disclaimer applies