CapitaMall Trust (CMT), at a price of $2.29, is moving against the broad market trend. While the STI is fast approaching bear territory, CMT is near its 52-w high of $2.31, it is also near its highest price in the past 5.5 years.
This has piqued my interest to look deeper.
Interesting Price MovementLooking at CMT’s 4 year chart, the stock shows a rather distinct pattern of range-bound movement.
On hindsight, one can attempt to enter CMT at the low range of this price channel at around $1.85-$1.95, and profit from its rise to a high range of around $2.15 to $2.20. This entails a profit margin of between 10% to 19% with a waiting period of between 1.5 mths to 8 mths.
Opportunities of range trading for CMT in past 4 years. Source: poems chart liveIt seems that CMT is behaving like a swing trading stock, ideal
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