Hotel stocks could rerate

BONVESTS (95 cents) – Breaks out

-         Prices are attempting to move out of a narrow range

-         Successful break above 96 cents level indicate an upside of $1.08

-         Support is at 93 cents

CDL HOSPITALITY TRUSTS ($2) – Meeting resistance

-         Broad uptrend remains intact

-         Support should appear at $1.95

-         Resistance is at $2.07

HOTEL PROPERTIES LTD ($2.28) – Challenging resistance

-         Prices may lose steam before they retest $2.39

-         ADX has turned down, curtailing the extent of the upmove

-         Immediate support is at $2.20

-         Breakout above $2.39 indicates target of $2.75

HOTEL GRAND CENTRAL (78.5 cents) – Set for retreat

-         Prices are set to fall

-         Support is at 77 cents which when broken will cause prices to fall to 73 cents

-         Resistance is at 79 cents

OVERSEAS UNION ENTERPRISE ($2.54) – Developing uptrend

-         Prices broke out of sideways formation

-         Break above $2.42 establishes this as a support and indicates upside of $2.90

-         Temporary consolidation in the near term

AMARA HOLDINGS (37 cents) – Likely to ease

-         This is probably the weakest of the hotel stocks

-         Prices are trying to hold on to support at 36 cents

-         Support is at 35 cents and breakdown points to downside of 30 cents

(Source: TheEdgeSingapore August 13, 2012)