CCT – OCBC

Firm support established. CapitaCommercial Trust could see more upside potential, after recently staging a rebound off its $1.00 key resistance-turned-support and the lower boundary of its 9- month uptrend channel on increasing volume.

Indicators more upside biased. With the RSI trending higher after a rebound at the 30% oversold region and the MACD indicator on the verge of a bullish crossover inside the negative region, they suggest that the momentum is starting to turn bullish. Initial resistance at $1.14. On the upside, we peg the initial resistance at $1.14 (support-turned resistance and gap zone in Jan ‘10), breaking which, we see the subsequent resistance at $1.21 (support-turned-resistance).

Immediate support at $1.00. In the near term, $1.00 remains a firm support. Below this, the subsequent support is pegged at $0.91 (resistance-turned-support), ahead of $0.77 (key resistance- turned-support).

Note: We currently have a fundamental HOLD rating on CapitaCommercial Trust with $1.16 fair value.