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Technically, it would seem as if a test of the previous low at 83.5c achieved on 4 March is on the cards. The 20d, 50d and 100d MAs are all downtrending. The MACD is still below zero and has formed a bearish crossover with the signal line. OBV shows distribution taking place. MFI shows a lack of buying momentum. Stochastics has just dipped into oversold territory.
A bearish picture is obvious, no doubt. However, the selling down lacks strong conviction, in my opinion. If we look at 18 Feb which was the day the $1.02 support gave way completely, the volume was extremely high. Volume has been relatively low since that day as price retreated. I am not saying that price could not go lower but I am saying that the current selling pressure does not seem as great as it was earlier this year. Having said this, price could go lower and I see 80c as a significant support level.
What if 80c gives way? Well, a look at the weekly chart shows the 100wMA at 75c and this should provide a stronger support.
Related post:
Genting SP: Stale bulls' second chance?
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6 comments:
Hey Ak,
Looking at genting too? haha :)
http://triple-screentrading.info/blog/?p=1014
Let's compare notes. I do not want to get into genting, but if the trading opportunity arrives, I might take a shot with a stop loss. Usually I'll trade a fundamentally sound counter without cut loss.
Hi LP,
My style, since this last financial crisis, has been to invest only in fundamentally sound counters without any cut loss as well.
I find it too painful to cut loss. Mentally, I am not conditioned to cut loss but I force myself to do it sometimes. Ouch.
Your TA is way more cheem than mine: "Macd histogram shows a possible class A divergence, though we’re currently at the B stage only". Wah!!! It's like Xiang Long Shi Ba Zhang! :)
Genting SP might be good for a trade if all the stars align. ;-p
Hi Ak,
Nevermind my cheam words, it's meant for the same group of pple that understands them, so I didn't bother to explain further :)
Basically, genting is a pending buy, as long as certain conditions are met :) I don't mind taking a small position to see how it turns out.
Hi LP,
Haha.. I kinda guessed the meaning. Similar to my own reading, I guess. ;)
I have three new positions in the last few weeks: Courage Marine, CapitaMalls Asia and China Hongxing. I think I will stay sidelined for a bit where Genting SP is concerned. Good luck, mon ami. :)
Hi, i'm sharing my view on capmallasia. Looking at the big picture, i can see a symetrical triangle that has formed and the bearish breakout occurs on 16th april. Since then, the selling has occur with heavy volume which is another bearish sign. A 3rd berish sign is the failure of the 2.19 all time low support. A target objective might be 2.07.
Hi PR,
Yes, I see $2.07 as well if $2.12 goes. CapitaMalls Asia's technicals are bearish overall, for sure.
However, the technicals today suggest that we might experience a bounce in price from the current oversold conditions.
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