Landmrk has just broken above its downtrend line

HwangDBS had issued a report on Landmark, valuing the stock at RM2.45. There are some development in its Bintan property, such as its sea-plan operation and the finalization of its masterplan. Phase 1 of its property development involved the construction of hotels under a crystal lagoon concept as well as the launch of its villas. At the current price, HwangDBS noted that the land in Bintan is being valued at S$5 psf as compared to S$21 psf in its last valuation.

This report prompted the stock to rally, breaking above its downtrend line at RM0.95. It even broke above its strong horizontal resistance at RM1.05. While the technical breakout is impressed, we must bear in mind that it was brought about by a report which caused a surge in buying interest. Once that surge has subsided, we will see its true potential. After all, this stock has rolled down a big hill and gathered much moss. I doubt it would just shoot up after a BUY call, even from HwangDBS. Gaining entry on a pullback would be a more prudent approach.


Chart: Landmrk's daily chart as at Nov 1, 2012_4.30pm (Source: quickcharts)

Based on the above, we should track Landmark closely as the stock is likely to be on the cusp of a reversal. If it doesn't drop back below RM1.00 on pullback, that could be the first sign that the stock is ready for better time ahead.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Landmark.