CapitaMalls Asia: Reversal?

CapitaMalls Asia (CMA) is buying Queensbay Mall in Penang. I have been to this mall a few times on cruises to Penang and Phuket. I think it is the nicest mall in Penang: new, spacious, clean and cool. However, everytime I went there, I would wonder how the shops survived. It was also very quiet.

CMA's chart looks similar to that of Raffles Education: a prolonged downtrend with a white candlestick reversal signal as well as higher lows formed on the MFI as it rises from the oversold region.

The descending 20dMA is approximating $1.95 and should provide resistance. In case this were taken out, the descending 50dMA at $2.06 would be the next significant resistance level. In a downtrend, sell at resistance and that is what I would probably do.

Related post:
CapitaMalls Asia: Rebounding from $1.83

CapitaMalls Asia +1.6%; the acquisition of Queensbay Mall in Penang is accretive: JPMorgan. The house adds, the stock is at "an attractive entry level," trading at a 30% discount to SOTP valuation and 1.2x FY10E book.
Wednesday, 22 December 2010

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