City Development has started the correction after the recent 2 months bull run. This pull back is a healthy one in order to charge higher by forming a “Higher High, Higher Low” uptrend chart pattern. Base on weekly chart, CityDev has found the bottom in mid Dec 2011 at $8.88 and the stock price is trading above 200D SMA. The expected pull back levels are $10.37 (38.2% Fibonacci Retracement Level) followed by $10.00 (the psychological support). Also take note that 50D SMA crossed above 150 SMA at about $10.00. As long as $10.00 support is hold, this is a good entry level for long term investment.
Cautious: This analysis is purely base on Technical. There are MANY DOWNGRADES by analysts on this stock recently. When Analysts said buy, you don’t sell. When Analysts said sell, you don’t buy!