Kepland – Poise for another high?

Trend: Uptrend, 20ma up, Macd above 0

Support: 4.05 (20ma), 3.87 (50ma)

Resistance: 4.22, 4.42

Observations
Candlestick – Small black candle.
Histogram – 5Rs. Bearish divergence is seen.
RSI – Around 60%. Bearish divergence is seen.
Stochastic –No Bullish crossover yet.
Bollinger Band – Closer to Mid band.

Conclusion:
Kepland has been one of the stronger property counter that had broken for new high in this year. Will it carry on breaking new high after current retracement?
The trend of Kepland has been uptrend and its recent retracement could be starting to form a higher low. Based on current price, it is trading very closely to a support level of 4.05 level which confluences with 20ma. Based on the indicators, it has yet to form any bullish signs to confirm a higher low is being formed. But one concern for Kepland is that it is starting to form a bearish divergence signal for both Histogram and RSI.
If bullish signal is to be formed at 4.05 level, the uptrend might continue towards 4.22 resistance and if the uptrend is still bullish, it might break 4.22 level and surge towards 4.42 resistance level. On the other hand, if the bearish divergence takes into effect, 4.05 level might not hold and might seek 3.87 level as the next possible support.
In conclusion, as it is now trading uptrend and is close to support level, there is a possibility that a bullish signal might be formed here. But because of bearish divergence, one must be cautious on its upside going forward.

What to watch out for this week:
1) Formation of bullish signal at 4.05 level.
2) Break out of 4.22 level to confirm a higher high.

Trading strategy to adapt right now:
- Wait for appearance of bullish signal before going long.
- Long when price breaks 4.22 level with high volume.

*Disclaimer applies