CapLand China - 21 Mar 2025

Technical Analysis of CAPLAND CHINA T (SGX: AU8U) - 1D Timeframe

1. Trend Analysis

• Current Market Trend: Downtrend

  • The stock has been in a long-term downtrend since hitting a peak of 0.940 in late 2023.

  • Recent price action shows lower highs (LH) and lower lows (LL) confirming the downward momentum.

• Recent Trend Structure:

  • Lower Highs: 0.840 → 0.765 → 0.740 → 0.710

  • Lower Lows: 0.720 → 0.690 → 0.660 → 0.655 → 0.680

• Signs of Trend Weakening?

  • A short-term bounce is visible from 0.680 to 0.720, indicating some buying interest.

  • However, the latest price at 0.700 is still below key resistance at 0.740, suggesting the downtrend remains intact.

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2. Key Price Action Signals

• Strong Trend Bars:

  • The 0.885 spike in October 2024 had a strong bullish breakout, but the price failed to hold, indicating a bull trap.

• Reversal Patterns:

  • Bullish Reversal: A recent bounce from 0.680 to 0.720 suggests a potential short-term support level.

  • Bearish Reversal: Price rejected 0.740 multiple times, signaling strong supply at that level.

• Inside Bars & Doji Bars:

  • Several consolidation phases seen around 0.700 - 0.740, showing indecision before continuation lower.

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3. Support & Resistance Levels

• Major Resistance Levels:

  • 0.740 - 0.745: Multiple rejections, acting as a strong supply zone.

  • 0.885: Long-term resistance from previous bull spike.

• Major Support Levels:

  • 0.680: Recent swing low where buyers stepped in.

  • 0.655 - 0.660: Strong historical support zone.

  • 0.700: Key psychological level where price is currently hovering.

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4. Breakout & Pullback Analysis

• Breakout Strength:

  • Strong bearish breakouts with large red candles and increased volume during downtrends.

  • Weak bullish breakouts failing to hold key levels like 0.740.

• Pullback Patterns:

  • Short-term pullback to 0.720 could indicate a potential test of resistance before further downside.

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5. Market Context & Trading Bias

• Trending or Ranging?

  • Overall downtrend, but currently in a short-term range (0.680 - 0.720).

• Trend Shift Signs?

  • A higher low above 0.720 and a breakout above 0.740 could suggest trend reversal.

  • If price fails to hold above 0.700, expect more downside.

• Trader Psychology:

  • Bearish control, as seen in failed rallies and strong sell-offs from resistance zones.

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6. Supply, Demand & Liquidity Analysis

• Supply Zones (Resistance):

  • 0.740 - 0.745: Strong selling pressure.

• Demand Zones (Support):

  • 0.655 - 0.680: Previous buying reaction zone.

• Liquidity Traps:

  • False breakout above 0.885, trapping late buyers before a major sell-off.

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7. Risk Management Strategy (Trade Setup)

• Bullish Setup (Reversal Play)

  • Entry: Above 0.740 with strong breakout volume.

  • Stop-Loss: Below 0.700 to avoid fakeouts.

  • Target: 0.765 - 0.885 for a strong upside move.

• Bearish Setup (Trend Continuation)

  • Entry: Below 0.690 for trend continuation.

  • Stop-Loss: Above 0.720 to avoid being trapped in a bounce.

  • Target: 0.660 - 0.655 for a lower support test.

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Conclusion

• Current Trend: Downtrend, but showing short-term consolidation.

• Key Levels to Watch: 0.700, 0.720, 0.740, 0.655.

• Trading Bias:

  • Bearish below 0.700 (trend continuation).

  • Bullish above 0.740 (potential reversal).

• Next Steps:

  • Watch for strong breakout volume at key levels.

  • Be cautious of fake breakouts, especially near 0.720 - 0.740.

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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