Genting SP: Stale bulls' second chance?

Genting SP experienced a white candle today on increased volume.  As the price touched 91.5c, approaching the 50wMA (93.5c), it lost momentum and closed at 90.5c.  Volume, although higher, is not significantly so.  The suggestion is, therefore, that the buy ups are half hearted.

The MFI and Stochastics are still in oversold regions and seem to suggest that if a reversal does happen, it is not unexpected.  We might want to remember that in a bearish scenario, MFI and Stochastics can stay oversold for a very long time.  MFI and Stochastics are also more accurate indicators in a trendless situation.

So, the price won't go higher?  If the 50wMA (93.5c) is taken out in the next session, we might see the price rising to the 20dMA, which is descending sharply and should be at 97c then.  All eyes would be on whether the price action would be able to break through the 20dMA to close higher, failing which, a resumption of the downtrend is more likely. I still see strong supports provided by the 100wMA (74c) and the 200wMA (70c) then. 

Do people really believe that the opening of Universal Studios on 18 March would have a huge positive impact on Genting SP in the near term?  The jury is still out.  More likely, this upmove is the stale bulls' second chance to reduce exposure or to get out totally as the downtrend is still intact.  Short sellers should find shorting closer to resistance almost irresistable given the bearish technical indicators.

Genting SP: When is it safer to buy?

On 25 Feb, I wrote the following about Genting SP:

"Genting SP continues to weaken as expected. The highest it got to this week was 98c to give stale bulls a chance to reduce exposure. Closing at 91c today hugs the lower limits of the Bollinger bands. The downtrend seems ready to continue as the MFI continues to decline indicating reducing buying momentum. In the unlikely even that the price moves up in the next session, resistance is at 98c.

"Looking at the weekly chart, we see a precarious situation. Price is hugging the lower limits of the Bollinger bands and the MFI continues to decline just like in the daily chart. However, what is important is that it has closed below the rising 50wMA which is at 92.5c. If price is unable to recapture this support level to close at or above 92.5c in the next session, which is the last trading day of the week, the chart would look very ugly. The ultimate downside target would be 74c, a support level provided by the rising 100wMA. Although there would be intial support at 80c, such a potentially huge fall in price would be too tempting for short sellers to ignore."

Today, Genting SP continued its downward slide, closing at 84.5c.  Momentum oscillators such as the MFI and Stochastics show that the counter is oversold.  The MACD plunges deeper into negative territory.  Longer term MAs are descending with the exception of the 200dMA which now acts as resistance in the event of any rebound.  This is at 98.5c. 

The MFI on the weekly chart is not oversold yet while the MACD is on the verge of plunging below zero.  On a weekly basis, there is a strong suggestion of more downside as well.  Trying to make some money from this counter by punting on the long side is going to require a lot of courage and luck at this juncture.  Having said this, the downside would probably be reaching an inflection point in the near future. 

The proximity of the rising 100wMA and the 200wMA to each other would provide a very strong support at 74c and 70c, respectively.    For investors who really like this counter for some reason, they could consider accumulating then, especially if the MFI and Stochastics indicate heavily oversold conditions by then.