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Capitaland: Rising MACD in weekly chart.

Thursday, December 15, 2011

I look at weekly charts when I am interested in the longer term technicals of a particular stock. I got more shares of Capitaland at $2.35 not too long ago. Its price hit a low of $2.25 so far today.

However, as my motivation for being invested in Capitaland is because of its cheap valuation, I am not too concerned with short term price weakness. Of course, I might do a bit of trading if I could make some extra money on the way.

With this in mind, I looked at the weekly chart earlier. I found that the MACD is rising as price weakens. A positive divergence.


Also, up till now, this week's volume has been relatively low compared to last week's. We need to see how things pan out tomorrow, the final trading day of the week.

Connecting the lows of the weeks of 22 August and 3 October gives me a trendline which suggests that there could be support at $2.16 if the counter should go that low in price this week or next.

6 comments:

Ray said...

Hi AK I can see the stock price forming lower lows but don't see where the MACD histogram is forming higher lows. Mind pointing out where it is?

AK71 said...

Hi Ray,

I was not referring to the histograms. I was referring to the MACD itself, the blue line. :)

Anonymous said...

I think there is no life in this stock; not the time to accumulate until it reaches the 2009 low.

AK71 said...

Hi Anonymous,

The 2009 low? It could happen, of course.

Could you include your name or initials in future comments? Thanks. :)

Anonymous said...

I foresee Capitaland will fall close to 2009 low. Shorter like to short this stock. It is a v.attractive stock based on valuation. Can consider to accumulate.

AK71 said...

Hi Anonymous,

Thanks for sharing your foresight. :)

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