最新消息：City Development
After a meteoric rise in its share price, we think CDL may be due for a pull back soon.
The recent surge in price is from the low of about $8.00 and after 6 days of price
surge, notice the volume is abating as people gradually lose interest in the counter.
The recent high of $10.00 acts as its resistance and while there is a chance to trade
beyond $10, notice how each time after it rises rapidly, there is almost always a
subsequent pull back shortly.
Just hitting a resistance of $10 is inadequate to call for a short. We seek bearish
formation in the charts. Traders interested to short CDL, look out for the appearance
of the type of candles circled in yellow. We think a relatively strong retracement could
take it down by nearly a dollar to about $9.00.
The technical analysis is invalidated if the counter continues to trade above $10.00
with strong volume and/or subsequently forms a consolidation above $10.00.