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Charts in brief: 8 Jul 10.

Thursday, July 8, 2010

CapitaMalls Asia:  Is this counter just rebounding from oversold levels or is this the beginning of an uptrend? The recent low of 6 Jul at $2.02 helped to establish the third fan line.  This is a gentler uptrend compared to the earlier two fan lines.  All three fan lines originate from the same low of $1.91 achieved on 7 May. Distribution reached a peak on 2 Jul as volume expanded on two consecutive black candle days. The lower volume on the two black candle days compared to higher volume on up days after that suggests that we have reached a floor and price is turning up. Volume expanded today as price moved higher to close at $2.07.  Forming a doji, however, suggests that the buying lacks conviction. Immediate resistance at $2.10 and if momentum stays positive, we might see $2.13 tested too.

Golden Agriculture: Negative divergence between price and volume is quite obvious to me. Today's white candle has closed above the downtrend resistance. However, this was achieved on much lower volume. Is this sustainable? Theoretically, no. Next resistance at 55c. CPO continues its downtrend and is at RM2,290 today. The double top achieved earlier this year at about RM2,700 could see price of CPO correcting to about RM2,100 in time.  This is not good for Golden Agriculture's bottom line.

Genting SP: Continuing its levitation act despite an obvious negative divergence between price and volume. MFI, which accounts for price and volume, is in a downtrend.  Demand has fallen but price remains quite bouyant. Unless volume expands significantly and the resistance at $1.20 is taken out convincingly soon, this is a sign of churning and perilous for anyone who chooses to go long now. A retracement would find initial support at $1.12.

NOL: Volume expanded tremendously as price gapped up and formed an impressive white candle. Breaking resistance formed by a confluence of MAs is likely to see price moving higher.  I see initial resistance provided by the downtrend resistance at $2.07 in the next session.

LMIR: Technically, I still see a negative divergence between price and the MFI. The doji formed today could even be the set up of an evening star pattern. Having said this, if the uptrend support holds up if next tested, it could be a sign of firm underlying support and the rising OBV since price touched a low of 42c on 25 May does suggest that there is more accumulation than distribution going on.


Chu Yeow said...

Thanks for covering Genting today :)

Anonymous said...

one thing i realised is capmallsasia selling volume is higher than buying volume

AK71 said...

Hi Chu Yeow,

I usually scan through the charts of counters on my watchlist at the end of the day to spot any interesting developments. Genting SP fits the bill this time. ;)

Looks toppish and somewhat perilous. Of course, the picture could change if there is a high volume buy up soon. Would correct all the negative divergences. Good luck. :)

AK71 said...

Hi ezinvest,

Personally, I believe that CapitaMalls Asia has greater risk of a downside than chances of an upside. Of course, Mr. Market will do what he does and my opinion does not matter. ;)

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