Singapore Trendspotter: Bullish Opportunities in CDL Hospitality Trusts

CGSI Research | March 14, 2025

CDL Hospitality Trusts – Technical Buy

CDL Hospitality Trusts, a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT) and CDL Hospitality Business Trust (HBT), is showing signs of a bullish turnaround according to the technical analysis. The report highlights several key factors that indicate a potential upward trend for the stock:

Breakout from Falling Wedge

The stock has broken out of a larger falling wedge pattern, with a strong bullish candle supported by healthy trading volume. This suggests a shift in momentum towards the upside.

Ichimoku Signals Bullish Reversal

The Ichimoku cloud on the daily chart is displaying early signs of a bullish reversal, further confirming the positive outlook for the stock.

MACD Crossover

The MACD (Moving Average Convergence Divergence) line is expected to cross above the signal line, generating a bullish signal.

Stochastic Oscillator Bullish Divergence

The stochastic oscillator has formed a bullish divergence, indicating that the oversold conditions have been resolved and the stock is poised for a potential rebound.

Positive Momentum Indicators

The 23-period Rate of Change (ROC) is rising and has formed a bullish divergence, while the Directional Movement Index’s bullish strength signal remains valid, further supporting the bullish case for CDL Hospitality Trusts.

Expanding Trading Volume

The trading volume for the stock has been expanding in a healthy manner, suggesting increased investor interest and participation in the upward movement.

Recommendation and Targets

Based on the technical analysis, the report recommends a “Technical Buy” on CDL Hospitality Trusts, with entry prices suggested at 0.830, 0.820, and 0.790. The report sets target prices at 0.910, 0.980, 1.03, and 1.10, with a stop loss at 0.760.