CapitaLand Investment Limited (SGX: 9CI) – Opportunity Following Dividend and Rights Issue
Trade Set-up:
- 9CI’s share price has recently fallen after issuing its dividend of $0.12 along with 0.057 shares of CapitaLand Ascott Trust (HMN) per share.
- From the chart, the orange, blue and black exponential moving averages (EMAs) represent the 20, 50 and 100 time periods respectively.
- As of 28/04/23 market close, the daily chart shows that price has rebounded slightly off the long term 100-day black EMA.
- RSI has also dipped following this gap down in price signalling downward momentum.
Trade Execution:
- When the next daily candle breaks above the high of the 28/04/23 candle, we can look to take a long trade and take profit at around the $3.88 level.
- However, if price breaks below the 100-day black EMA again, we can look to enter a short trade and take profit at around the $3.60 level, where the previous gap up occurred.
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