Executive Summary

City Development Limited (C09.SI) has been demonstrating sustained strength with a well-established long-term uptrend, with prices consistently holding above the rising 200-day and 100-day moving averages. The stock has continued to form higher highs and higher lows over the past year, reflecting steady institutional accumulation. More recently, prices have advanced toward the key psychological $10.00 resistance level after stabilising above the $9.60 support region. While momentum has accelerated in recent weeks, the current pause just beneath $10.00 suggests consolidation rather than exhaustion. With earlier 1GT Bullish signals still playing out, a sustained move above this threshold could signal continuation toward the next resistance near $11.00.

This setup unfolds against a broader Singapore market that remains constructive but measured, with the Straits Times Index hovering near recent highs following its brief move above 5,000. While export growth has moderated and global risks persist, domestic liquidity initiatives and steady institutional participation continue to underpin sentiment. Within this environment, City Developments’ technical structure remains intact, and how price behaves around the $10.00 level may determine whether the next leg higher begins in the sessions ahead.

City Development Limited (C09.SI) is one of Singapore’s largest property developers, with a diversified portfolio spanning residential developments, commercial properties, hotels, and integrated projects across Asia, Europe, and key gateway cities. The group’s exposure to both development and recurring income assets, particularly through its hotel arm and investment properties, allows it to benefit from property cycle recoveries while maintaining a degree of earnings stability from rental and hospitality income.

From a long-term perspective, City Developments continues to trade within a strengthening uptrend, with prices holding firmly above its rising 200-day moving average, signalling that the broader structural recovery remains intact. 

Over the past year, the stock has consistently formed higher highs and higher lows, suggesting that institutional accumulation has been gradual but persistent. 

In the shorter term, momentum has accelerated meaningfully since the start of the year, with prices reclaiming and staying above the 100-day moving average before pushing toward the psychological $10.00 resistance zone. 

The recent consolidation just below $10.00 suggests that buyers are absorbing supply rather than retreating, indicating that underlying demand remains supportive.

Importantly, 6 consecutive 1GT Bullish signals have appeared throughout the earlier stages of this uptrend, marking key points that there is still buying interest and strength in the counter. 

The most recent 1GT Bullish signal appeared after the breakout above the previous $7.50 resistance level as the stock transitioned from consolidation into expansion. 

As long as prices continue to hold above the $9.60 support region, the existing bullish structure remains valid, and the earlier 1GT Bullish signals continue to play out with the broader uptrend.

So, how does one take a position in City Development to ride the uptrend further with lower initial capital outlay?

Investors who are thinking of participating in the potential short-term upside toward $11 can consider leveraging on the share price move via City Dev call warrants. The warrants cost less than the shares and are not subject to margin calls.

Macquarie has a tool known as the Warrant Calculator to help investors estimate their returns with warrants versus the underlying share, as well as the maximum holding period if one were to purchase the warrant.

To use this tool, one needs to have a target entry, exit/cut loss view on the underlying share. The calculations are performed on trending City Dev call warrant CityDev MBeCW260730 (WKUW) (https://warrants.com.sg/tools/livematrix/WKUW)

Assuming an investor wants to get into a bullish position in City Dev only at the $9.60 support level, they can enter that stock entry level under the “Underlying price entry” field sitting below the “target entry variables” column. Assuming this happens on 24 February, the price of the warrant will be $0.054:

Warrant Calculator: type in your stock entry level and adjust the date to an entry day

To find out how the warrant will perform if City Dev moved to the near-term resistance i.e. your target exit level in the stock, type in $11.00 in the “Underlying price target” underneath the “Target exit variables” column on the right. Move the “Date” slider to observe the warrant price change:

Warrant calculator: warrant produces 88.9% gains with 50 days holding period given $11.00 price target

Assuming City Dev moves 14.6% higher from $9.60 to $11.00 in 50 days, the warrant will increase 6 times more, that is, gain 88.9% from $0.054 to $0.102.

As you increase the “Date” slider to a further date, you will notice that the warrant returns will keep falling to a lower % level. This is due to the time decay effect – with the warrant value falling with the longer holding period:

Warrant calculator: warrant produces lower returns with a longer holding period

If you increase the date slider to its maximum i.e to its last trading date (23 July 2026) before expiry, you will see lower returns of 48.1% (assuming all other factors constant).

Should your price target exit level in the stock be lower e.g. $10, you will notice that the holding period you can afford to hold onto the warrant is shorter:

Warrant calculator: warrant holding period is shortened with lower exit stock price target

In this case, 59 days from your date of entry will no longer generate a magnified price gain in the warrant versus the share price gain of 4.2%, and is hence your maximum holding period in this warrant.

It is important that warrant holders use the Warrant Calculator tool to calculate the maximum holding period or date based on their stock entry and exit price targets, as holding onto the warrant beyond this date will lead to losses even if their stock view was correct.

Investors should note that leverage works both ways. Whilst warrants can be used to magnify one’s exposure and potential gains from favorable price moves in the underlying shares, losses can also be magnified when the price moves against the investor. 

Additionally, using a ST Engineering call warrant will only allow you to participate in the share price move, and is not equivalent to investing and holding the shares directly.

The sharing on how one can take a position using warrants has been contributed by Macquarie Warrants Singapore who is the issuer of these warrants listed on SGX.

About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

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