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Heeton In Bullish Trend Channel
Trend Spotting | 23 April 2010
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By: Xavier Lim
Articles (51) Profile

Bullish move. Heeton broke above its long period of $0.39‐$0.49 consolidation pattern. The move technically suggests that momentum is bullish for the share. The share is also moving up fast in the trend channel, challenging the next resistance at around $0.615. With no other major unfavorable news, we expect the share to break through the $0.615 resistance line easily, and head towards the next resistance line at $0.755, the price before a gap down on 15 Aug-07 (to fill up the gap).

RSI @ 80. However, the RSI indicator has approached the 80 mark, meaning that it may be getting overvalued or moving up too fast and is a good candidate for a pullback. An asset is deemed to be overbought once the RSI indicator approaches the 70 mark. The share will be falling back fill up the breakaway gap at around $0.525, which create an immediate support line.

Healthy Fundamentals. Heeton Holdings’ net assets and FY10 performance are expected to benefit from the continuous improvement in the private residential property market. In addition, Heeton has recently divested its wet market business to focus on property development. The sale, which amounted to $25.55m, was completed early this year. According to Heeton, the disposal of its five wet markets gave rise to a gain on disposal of approximately $5m to be recorded in FY10. Furthermore, the company is trading at a big discount against its net asset value of $0.807. The table below shows Heeton’s current development projects and land bank.

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Armed with an arsenal of investment knowledge, Xavier is the Senior Research Editor at Shares Investment.

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Heeton Hldgs  -- -- --   
Business: Co is engaged in the ppty devt & invs activities in S'pore.

Insight: May-19, 1Q19 revenue slid 6.1% due to decreased sa... Read More

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