City Development has a bearish Tenkan sen – Kijun sen on June 23, the day it gapped down.
While the kumo seems to provide support at around 8.38, a closer look at the Weekly Chart provides a different picture.
1. On the Weekly Chart, it shows that the price is now within a fairly thick kumo and it has failed to breakout of the resistance.
2. Â On the Daily Chart, a bearish Tenkan sen – Kijun sen cross. Even then, after that, the price rally back but failed to break through the resistance of 8.94 (my cut-loss position). My initial target price was 8.22
3. Today, there is a sell off on City Development on news that the government is looking into imposing a tax on property gains. This news is the perfect catalyst for the bearish move with a very high volume sell off; hitting my initial target easily.
4. City Development closes at 7.88 and may break through the kumo support if there are more sell off. For now, I am looking at a support of 7.78 and 7.60
5. Should it break down from the kumo support further, then my next target price is 7.5, and 7.2
6. Let’s see how long this will go. Will it be the start of a downtrend for the property counters?