CapitaMalls Asia: Closing at $1.70 support.

In the massive selling down, CapitaMalls Asia touched a new low of $1.68 before closing at $1.70, which remains an important support. Would the price continue to decline next week? Your guess is as good as mine.

However, what is clear is that the downtrend is still intact. If we draw a trendline resistance connecting the highs of 9 Feb and 17 Feb, we would see that it approximates the position of the 20dMA. This means that the 20dMA is providing immediate resistance. A retest of the high of 3 March at $1.78 could happen and it should be a strong resistance. Wait a minute? Did I just say could happen? Yes, I did.

If we look at the MFI, which takes into consideration volume and price, it has formed a higher low. There is some positive momentum in demand as price weakened. Now, if we look at the volume, on 28 Feb when a black hammer was formed, volume was very high. Look at the last session which also saw the formation of a black hammer and we would see that the volume is much lower. Sellers are less enthusiastic now.

The 20dMA would provide immediate resistance on the upside while immediate support is at $1.70 with a possibility of a retest of $1.68.

Related post:
CapitaMalls Asia: A basket case?