Ivory has broken above its downtrend line

New Development

Ivory Properties Group Berhad ('Ivory') will develop the Bayan Mutiara mixed development project tendered out by the Penang Development Corp (PDC).

Ivory has just received the letter of acceptance by PDC of its proposal for purchase and development of 102.56 acres of land located in Bayan Mutiara of which 67.56acres are existing land and 35 acres are to be reclaimed for a proposed mixed development.

Ivory outbid SPSetia for the Bayan Mutiara mixed-development project which was carried out by tender with the reserved price set at about RM200 per sq ft.

Technical Outlook

The above news could be the catalyst for the recent rally in Ivory, which sent the share price above its downtrend line at RM1.08 in early July. Its immediate support & resisatnce is at RM1.10 & RM1.20, respectively.


Chart: Ivory's daily chart as at July 25, 2011 (Source: Quickcharts)

Conclusion

Based on this technical breakout, Ivory could be a good trading BUY. Since the news is out, the trading can be a bit tricky. If there is not follow through rally above RM1.20, you may see a correction back to the support of RM1.10 or even to the downtrend line (now a support) at about RM1.05. If you are patient, you may want to wait for pullback to RM1.05-1.10 before committing.