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11/18/98 City Development (CDEVY,[US traded otc ADR, main exchange is Singapore]) Points to watch: Completed Elliott Wave 5 down pattern in early September. Stock has closed above its 50 week moving average 2 straight weeks and closed slightly above an important Gann resistance point on Monday.. Daily Money Flow showed strong divergence at bottom and is rising. Daily RSI, weekly RSI, and weekly MACD all showed strong divergences at bottom and are rising. Stock is short term overbought and vulnerable to a pullback. Downside support exists at 3-3.38. Strong resistance directly overhead at 3.88-4.13. Gann angle resistance at 3.88, fibonacci 2.62 extension at 4, and the 62% retracement level of the March-September decline at 4.13. Buy on a move above 4.25. |
