Class (CL1) – overbought and at resistance
CL1 has been trading in a primary down trend since October 2017 which is still technically intact. The current upswing has rebounded to its long term down trend line crossing at $1.80 where strong selling pressure is likely to arise.
The RSI indicator has reached strongly overbought territory suggesting that the price is vulnerable to a short term pull back.
Given the proximity to dynamic resistance and the overbought momentum conditions the probability of a sharp pull back from here is high.
Cedar Woods Properties (CWP) – overbought
CWP has been trading in a strong upward trajectory since January 2019 which is still technically intact. The current upswing is approaching key resistance around $6.30 where strong selling pressure is likely to arise.
The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a pull back.
Given the proximity to key resistance and the overbought momentum conditions we are of the view that the near term upside from here is likely to be limited.
Hotel Propery Investments (HPI) – overbought
HPI enjoyed a strong bounce since January 2019 which now appears to be losing momentum.
The RSI and the MACD indicators have reached strongly overbought territory suggesting that the price is vulnerable to a pull back in the short term.
The weekly RSI and stochastic indicators are overbought as well suggesting that the medium term up trend from the February 2018 low is likely to take a breather in the months ahead with the price retreating to $3.20.
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