CapitaMalls Asia: Buy signal.

CapitaMalls Asia has a buy signal on the MACD histogram. A white candle without an upper wick was formed today on slightly higher volume as price closed at $1.96 and this has a bullish tone.

The MACD has been forming higher highs and is rising in positive territory. The MFI has formed a higher low as it broke resistance at 50% to move higher. Since 17 Dec 2010, the OBV has been moving higher although in a choppy manner. So, there is continual accumulation.

The 20dMA at $1.93 is resistance turned support and we could see price move higher.  Immediate resistance is at $2.00 which is where we find the upper Bollinger band and $2.03 which is defined by the third downtrend resistance line drawn from the high formed on 6 Oct 2010.

Breaking $2.03 on high volume could see the counter moving higher but bearing in mind that the longer term downtrend is still intact, I would rather err on the side of caution and divest most of my long position at resistance levels identified. Where is the longer term downtrend resistance line now? At approximately $2.14.

Related post:
CapitaMalls Asia: Moving higher?