Capitaland: Average buy price of $2.81.

Readers might remember that I said I was waiting for a chance to reduce exposure to this counter. It means waiting for a rebound to reduce at resistance. I do not like selling as prices are on their way down. Of course, as I have mentioned before, this is also a flaw in my methods. If there should be no rebound, then, it is more stocks for the freezer. However, if we believe that downtrends are rivers of hope, then, rebounds are just a matter of time.

With Capitaland, price has continued to drift lower for a month or so now. No rebound. Some traders have thrown in the towel and called it quits, selling away their shares. This, to me, shows fatigue amongst long holders and, perhaps, many, if not most, of the would be sellers have sold. The counter's share price would have a better chance of going higher then.

Today, there was a fierce tussle between bulls and bears. Very high volume was chalked up as price closed lower at $2.82, after touching a low of $2.79, forming a black hammer in the process. We might not have seen the bottom yet but we could be seeing the corner of a floor.

There are no signs of a reversal yet and buying into Capitaland at $2.81 is based on a believe that the counter is oversold and that a technical rebound is overdue. Target to the upside is $3.00. Wish me luck.

Related post:
Capitaland: Daily versus Weekly.