Sunday, January 16, 2011

Buying opportunities for property counters?

Would the recent property cooling measures present some buying opportunities? Having sold some shares recently, I am sitting on some spare cash that could be used to "capitalise" on this development.

Lets see...



Ho Bee

Wing Tai

From the charts above of Allgreen, Capitaland, Ho Bee and Wing Tai, we can see that the last time (August 2010) property cooling measures were announced, most counters took only about two to five trading days to recover from the sell-down...

On further comparison, we can also see that most property counters "gap-down" this time... compared to last august, when share prices made a dark bearish marubozu candlestick.

During this round of property cooling measures, there may be good property counters to snap up. However, one must always be cautious and wait for the selling pressure to dissolve first... many of the property counters have not reached oversold condition as seen from RSI and Stochastic indicators...lets see what happens on monday. :)

Note: I have left out other property counters like City Dev, Guocoland, Kepland, SP land, UOL etc. owing to various reasons like high share price and not within my budget, low daily trading volume etc.

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