CapitaMalls Asia: Pushing it higher.

The counter's share price briefly went above resistance identified at $2.04 to touch $2.05. Closing at $2.01 shows that resistance at $2.00 has been overcome and could turn support. This needs confirmation although volume expanded further too as price moved a tad higher.

Note that the very long upper wick of the candle shows intense selling pressure higher up. If there is follow through in the next two sessions, we could very well see $2.08 or even $2.10 tested although things are looking somewhat stretched. Note also that the MFI is now testing 50% which functions as resistance in such an instance sometimes. I would divest again if price should rise to test $2.08 and $2.10.

Related post:
CapitaMalls Asia: Partial divestment at resistance.

Daiwa Capital Markets keeps its Outperform rating on CapitaMalls Asia (JS8.SG) with an unchanged $2.65 target, as the company builds new properties, and as the house believes the markets have priced in China’s recent curbs on property speculation. The house expects the mall developer to report a net profit of $567 million on Feb. 17.

 
Wednesday, 09 February 2011

© 2011 - The Edge Singapore