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Closing at $1.72 means that the short term downtrend is broken. Of course, if price were to go higher tomorrow, we would have confirmation. If price were to close below the trend resistance tomorrow, the break out would be a fake out.
With the -DI declining as the ADX falls, the downtrend is definitely weakening and the +DI is rising which is good news for people waiting for a possible trend reversal. The MACD has completed a bullish crossover with the signal line in negative territory and is pulling away. Momentum is encouraging. The MFI has formed a higher low suggesting that underlying demand is strong.
If price were to move higher, immediate resistance would be at $1.75. Eventually, if $1.75 were overcome, a test of resistance at $1.83 is probable in time.
Related post:
CapitaMalls Asia: Low volume retreat.
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4 comments:
Hi AK71,
Looking at the yield history of this counter, and with the recent low yield of this counter, what could be the attractive point for this?.
Do you view this counter to have a growth potential (in terms of stock price/capital gain) or base on yield.
Notice that Co's Msia subsidiary also proposed to have placement of new shares, do you not think this will dilute this share.
Regards,
JJ
Hi JJ,
CapitaMalls Asia is primarily a developer with a stable of REITs. It is definitely a growth company. When the malls it develops and manages mature, it would offload them to the REITs under its wings at the market price for a profit. In the meantime, it has rental income from the malls it is still incubating and distribution income from its REITs. It is a good business.
As for its REITs raising funds, it is more good than bad since it would mean that they are financially stronger and more ready to absorb any properties to be offloaded to them. ;)
which will be better? capitalmalls asia or capital mall trust?
Hi WK,
It depends on what you are investing for. If you are investing for income, CMT is better. If you are investing for growth, CMA is more promising. :)
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