After the implementation of the ABSD (Additional Buyer Stamp Duty) last week, property developers took a hit and has been down almost every day since.
Wing Tai has since dropped from $1.07 on 7th Dec to yesterday's closing of $0.94.
I see this $0.94 as a support level, last seen in April 2009. At that time, WingTai embarked on an 8-month strong run to hit a high of $2.13 in January 2010.
Of course, with the ABSD in effect, property developers face an uphill task to generate profits for the upcoming financial work year. Do trade with caution.
Support: $0.92 - $0.94
Resistance: $1.00, followed by gap at $1.05-$1.10.
DISCLAIMER: The opinions expressed in this blog are purely my own analysis of the market, and should not be taken as a purchase or sell advice. I am not responsible for any profits or losses should you act on my views.
Tuesday, December 13, 2011
Stock in Focus: Wing Tai (13/12/2011)
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