Capland Ascott - 10 Feb 2025

Price Action Analysis for CapLand Ascott Trust (HMN-SGX)

1. Trend Analysis:

• Overall Trend: The stock is in a downtrend, as evidenced by a series of lower highs and lower lows.
• Recent Highs and Lows:
  • Lower Highs: 1.130, 1.100, 1.030, 0.985, 0.955
  • Lower Lows: 1.050 → 1.000 → 0.925 → 0.870 → 0.840 → 0.865
• Signs of Trend Weakening:
  • The price is currently consolidating around the 0.875 level.
  • Smaller trend bars and overlapping price action suggest possible exhaustion in the downtrend.
  • The presence of bullish reversal patterns near support levels.

2. Key Price Action Signals:

• Strong Trend Bars:
  • Red bars with follow-through indicate strong selling momentum.
  • Green bars at support levels show buying interest.
• Reversal Bars:
  • A bullish reversal (long lower wick) at 0.870 and 0.865, indicating demand.
  • Bearish engulfing candles around 0.985 and 0.915, confirming resistance.
• Inside Bars & Consolidation:
  • The recent price action near 0.875 suggests consolidation.
  • Potential breakout scenario if price clears 0.900 or breaks below 0.865.
• Doji Bars & Context:
  • Dojis appear at 0.885 and 0.920, indicating market indecision.

3. Support & Resistance Levels:

• Support Zones:
  • 0.840 - 0.870: Strong demand area.
  • 0.865 - 0.885: Holding as short-term support.
• Resistance Zones:
  • 0.915 - 0.920: Prior support turned resistance.
  • 0.985 - 1.000: Major supply zone.

4. Breakout & Pullback Analysis:

• Breakouts:
  • Weak breakouts near 0.900, as seen by long upper wicks.
  • A strong breakout above 0.920 could trigger a bullish move.
• Pullbacks:
  • Current price testing previous support-turned-resistance at 0.885.
  • A deeper retracement to 0.850 - 0.865 could attract buyers.

5. Market Context & Trading Bias:

• Current Market Condition: Ranging within a broader downtrend.
• Potential Trend Change Signals:
  • If price breaks and holds above 0.920, it could signal trend reversal.
  • A move below 0.850 would confirm further downside.
• Trader Sentiment:
  • Bearish Bias as long as price stays below 0.920.
  • Watch for a bullish breakout above 0.920 or buying interest near 0.865.

Conclusion:

• Bearish Trend with Possible Reversal Signs.
• Key Levels to Watch: 0.865 (support) & 0.920 (resistance).
• Potential Trading Setup:
  • Breakout Trade: Buy above 0.920 with a target of 0.955 - 0.985.
  • Support Bounce: Buy near 0.865 - 0.870 if price shows reversal signals.
  • Short Opportunity: If price breaks below 0.850, target 0.840 - 0.825.

Disclaimer:Please note that this analysis is for educational purposes only and should not be taken as investment advice. Trading involves significant risk, and you should consult with a financial advisor before making any decisions.

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