They chose financial independence over home ownership.

This is somewhat extreme but watch how this Canadian couple chose financial independence over home ownership.  They are in their 30s and,...

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CapitaMalls Asia: Strong uptrend emerging.

Friday, April 8, 2011

Despite strong buy calls from research houses, this counter's share price suffered from a prolonged period of weakness. However, recently, a strong uptrend seemed to be emerging for this counter. Refer to the orange color trendline support. Is this a reversal which would propel its share price much higher?

Volume in today's session was much lower than the previous day's but price still managed to close higher at $1.88 resistance, touching a high of $1.89 in the day. Rising on low volume is not a good sign usually but if we look at the bigger picture, the overall trend should be given more prominence. Indeed, the ADX seems to be turning up as the +DIs are rising. This is something we have not seen in a while. It suggests that a nascent uptrend could be gaining strength.

The MACD is rising higher in positive territory. The other momentum oscillators continue to rise as well. There is demand, there is accumulation and there is positive price momentum. The strength is impressive and I would be accumulating on weakness. I still have near term targets of $1.95 and $2.00 for this counter where price would meet with resistance. At what price would I accumulate? Immediate support is at $1.83.

Related post:
CapitaMalls Asia: Testing $1.88 resistance.


Anonymous said...

Thanks for this article..
How do you get the $1.95 resistance?

Vested too=)


AK71 said...

Hi Ken,

That's a candlestick resistance level. If you look back to end 2010, you will see it. :)

Good luck to both of us. ;)

Roland said...

Hi AK,

Good article on TA. I am also vested and I think their long term strategy is a good one. For the following reasons:
1) Dual listing in HK to get more visibility. More visibility more volume.
2) Their focus is on China where the government is trying to push internal consumption.
3) Tier 2,3 cities is short of large scale integrated shopping malls. So I think there is a demand
4) More importantly they go by "custom" and "leverage" model where they can build mall fast (leverage design), get good tenant (Leverage relationship) and hire local team (custom) to manage.

I think if you are in the business that is swimming with the growth trend, you already have +20% of probability of winning.

I am also vested and looking to pick up more...but I don't understand why the prices was depressed last few the price too high?

I have my market trend blog here:


AK71 said...

Hi Roland,

Thanks for sharing your analysis. I agree with the points you raised.

Why was the price so depressed in recent months? There is no accounting for prices most of the time since it is a function of market sentiments most of the time. Even valuation is a subjective exercise. ;)

Thanks for sharing the link. Good luck to the both of us. :)

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