CapitaMalls Asia: Plagued by downtrend.

It is quite obvious that CapitaMalls Asia is still in a downtrend. Macquarie just upgraded it to Outperform from Neutral and raised its target price to $2.24 from $2.19. Will this give this counter the much needed push to break out of its downtrend?

Technically, the counter's price formed a higher low on 4 Jan. This is somewhat encouraging as it has not done so since starting its current decline on 6 Oct 10. Since forming a white candle on 5 Jan, its price has been hovering at $1.88, resisted by the 20dMA.

MFI is now at 50% which could act as a support. RSI is now at its trendline support. Will the supports hold? The MACD, although above the signal line, is still in negative territory. This counter is currently at a crossroad.

Closing above $1.90 would signal a breakout from the downtrend while breaking below $1.88 would signal the collapse of immediate support and price could retest the $1.83 lows. Good luck to fellow shareholders.

Macquarie upgrades CapitaMalls Asia to Outperform. The house reckons “the current weakness is a buying opportunity in a retail powerhouse in Asia.” Notes, CMA invested or committed more than $1.65 billion in four projects in 2H10, ahead of its internal targets; mall developer and owner offers exposure to more than 90 retail malls across five countries in Asia. 
Wednesday, 12 January 2011

© 2011 - The Edge Singapore

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CapitaMalls Asia: Eyeing $1.83.