FKP Property Being Rerated

By Kenneth Robson on October 14, 2013 • ( 1 )

As requested by a kind reader, I have reviewed the current technical features for FKP Property.

A trend change emerging.

This post considers technical considerations only and is not a recommendation to buy or sell shares in FKP Property. It is a follow-up view-point after two previous submission on this company. They should be read for my earlier perspective.

TA Observations on a 12 month daily chart

The price-action formed a double-bottom in this period with support (S3) at $1.10. The second bottom was in June this year.
The 200 day moving average is in a long-standing decline, but the price action is well above this line now.
This year the trend has been consistently downwards, but the trend-line was decisively broken on the 03/10/2013.
Since the 26/09/2013, there has been an impulsive move higher, consistently in an upwards direction.
10/10/2013 was a large range day, gapping at the open, with a true range of 10 cents.
The price action has now penetrated the support resistance line marked S1 at $1.50 to reach a peak of $1.65, This is within reach of my previously suggested target of $1.67.
On the 10/10/13 when the share-price exceeded the previous peak of $1.56 on 5/08/2013, it was possible to state that the trend had changed, and that a new uptrend was emerging.
The RSI is now over 70 and in the over-bought zone, so a pause in trending might be expected.

Opinions

The change of long-term trend is significant.
The current impulsive move higher is strong, and the probability is for FKP Property to forge higher prices.
My next target to meet is $1.80 representing 100% retracement of this year’s down-trend.
I would expect there to be support between $1.50 and $1.56, but if holding a long-term long position, my stop would be below $1.30, Support above this level would keep up the new uptrend.