The price ascent of property-related stocks like Singapore Press Holdings (SPH), and those with limited free float such as United Industrial Corp, have stopped temporarily. Other stocks, such as OUE — which probably peaked on April 14 in the form of a shooting star on the candlestick chart — may be getting ready for an exhaustion gap.

The SPH stock has almost doubled since its low of $1 in November 2020. The move down to $1 and out of it formed part of a major multi-month base formation. Hence, the ability of this stock to climb through February to April was not a surprise. The initial target was $1.60, before it was lifted to $1.90. The roundophobic $2 mark coupled with a resistance at this area was always likely to cause prices to halt. Even if SPH builds a minor top, its moving averages continue to rise. In addition, long term momentum indicators such as one-year and twoyear momentum indicators and their smoothed counterparts are rising. Hence, prices should be able to find support at the initial target of $1.60, and build a base from there to retest $2.

OUE’s outlook is obvious following the formation of its shooting star. The stock is in the process of covering a gap. In theory, gaps that are quickly covered are usually exhaustion gaps. This gap gets covered at $1.40. In the chart, climactic selling is evident in the high volume that accompanied the shooting star on April 14 this year so an exhaustion gap cannot be ruled out.

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