CapitaMalls Asia: Watch the 50dMA.

The MACD has formed a higher low together with a higher low in share price last week. Momentum has clearly improved and we could have found a floor here, if not the bottom.

Closing at $1.25 in the last session meant that the resistance provided by the declining 50dMA was still valid. This morning, thus far, price action is flirting with this MA.

Could we see the share price closing above the 50dMA today? If it does, the 50dMA could be resistance turned support and price could go higher to test resistance provided by the declining 100dMA. This could be another good trade.

Capitaland: Positive divergence.

Capitaland spots a positive divergence. As price formed a new low on 4 Oct, it is clear a few sessions later that the MACD has formed a higher low. The MACD is a lagging indicator just like other momentum oscillators. So, things are usually clearer a few sessions later. Acting before a clearer picture forms would be to pre-empt.

That the MACD formed a bullish crossover with the signal line in negative territory also suggests the return of buying interest although not strong enough to send the MACD into positive territory. Coupled with the positive divergence, we could see Capitaland's share price moving higher.

A long white candle was formed in the last session as resistance provided by the 20dMA was overcome convincingly. Share price is currently resisted by the declining 50dMA which is at $2.52. If this were to be broken, I believe bulls will return and bears will cover their shorts.  We could then see the share price rising to test resistance provided by the declining 100dMA which approximates $2.71 which is also a potential double bottom neckline.

Could be quite a rewarding trade for breakout traders if a breakout should materialise.

NOL: Found a floor.

It seems to me that NOL's share price has found a floor, if not the bottom.

If we were to draw a trendline connecting the highs since 5 Jan 11, it is obvious that the long term downtrend remains intact. This trendline approximates the declining 100dMA which makes this the MA to watch. Then, why do I say the share price has found a floor?

Looking at the MACD, we see that it has been rising since hitting a low in late August. In the last session, it broke into positive territory which signifies the return of positive momentum.

The last three sessions also saw the share price trading above the 50dMA, suggesting that this MA could be resistance turned support. This is approximately at $1.125. If this support holds strong, we could see price rising to test resistance provided by the 100dMA which approximates $1.30.

Given the circumstances, buying closer to support could be a good idea for a trade.