Hotel Stocks - Defying the trend

Amara Holdings

- The price surge on the 12 March has pushed Amara Holdings above its 10 and 50-day moving averages, which is a positive signal in the near-term.

- This price surge was accompanied by a very significant spike in volume as well. This provides added confirmation that we can expect any pull back like the one we witnessed yesterday to be fairly shallow and well supported.

- The bullish candlestick formation on the 12 March, coupled with the stochastic indicator rising out of its oversold region, gives further evidence of rising confidence in Amara Holdings.

- Support set at S$0.48 and resistance zone set at S$0.65 ? 0.69.

Banyan Tree Holdings

- Banyan Tree Holdings has been holding up well despite the lower overall market. In fact, from the 26 February to date, Banyan Tree has chalked up an approximate 4% gain.

- The current resilience in price has kept it trending above the 10-day moving average, which imparts a bullish underlying sentiment to Banyan Tree Holdings at this stage of the market cycle.

- In the near-term, we could expect a pull back, as signaled by the weak volume accompanying the price rise in the last 6 trading days. However, we do not expect this pull back to be severe.

- Support set at S$1.60 ? 1.68. Resistance set at S$1.90.

Hotel Properties Ltd

- We witnessed a 2-day gap up in Hotel Properties Ltd. The gap up was accompanied by a significant spike in volume on both days, which indicates the upwards momentum is strong at this stage.

- This has resulted in an approximate gain of 23% since 26 February, compared to the 4% loss suffered by the Straits Times Index over the same period.

- Given the bullish candlestick formation, coupled with Hotel Properties trading above the 10 and 50-day moving averages, we anticipate to see strong support upon any pull back hereon.

- Support set at S$3.60 ? 3.80 and resistance level set at S$4.70.