Since hitting more than 4-year low of 1.70 (adjusted for rights issues) on 3/3/2009, Capitaland rebounded with strength until it almost doubled its value to 3.13 on 16/4/2009, a spectacular performance of 84% return in 1.5 months!

However, it advanced as fast as it plunged, with 25% of its value vanished since the recent high of 3.13! It is obvious the trading strategy of late is to enter and exit with fast and furious actions, best adopted in times when the underlying economy still looks very fragile.

It appears that Capitaland might hover around the 50% Fibonacci retracement of 2.40, a level once broken down with volume will mean further downside towards 2.25.

On the flip side, there is a high chance Capitaland will experience a technical rebound as it is basically oversold with short term resistance capped at 2.58.