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LMIR: Bought more at 48c.

Thursday, March 25, 2010


LMIR's chart looks like it might be in the early stages of a symmetrical triangle.  Since late January, the price action has been trapped between 47.5c and 51c.  Stochastics has turned up and seems ready to emerge from the oversold region.



Using Fibo lines to determine where the supports are, we see clearly that 48c and 47.5c are important supports.  47.5c is the support to watch.  If it breaks, the symmetrical triangle is out the window and we have to see if the rising 200dMA holds up well as the new support then.

As the reason for buying more units in LMIR recently is to lock in a yield of 10% per annum, I am unfazed by any near term weakness in the counter's price.  In fact, I bought more at 48c.

CapitaMalls Asia and AusGroup.

Wednesday, March 24, 2010

CapitaMalls Asia: Price closed below the trendline support today at $2.29, after touching a low of $2.28 (the 38.2% Fibo line).  Technically, this is supported by the declining 50dMA.  The decline is on the back of low volume with the MFI and OBV more or less unchanged.  These signs suggest that a benign low volume pullback is taking place.  However, this does not mean that price would not continue to drift downwards.  If the $2.28 support is broken, the next support level is at $2.25 which would see me buying more.

AusGroup:  Nice up day with price closing at resistance provided by the 50dMA at 60c after hitting a high of 61.5c on the back of increased volume.  MFI and OBV have both turned up which suggest that buying momentum and accumulation are both moving up a notch. 





We have a buy signal on the MACD as well and it seems poised to cross above zero. Resistance is provided by the merged 100d and 200d MAs at 63c. Initial support is at 58.5c. A negative is the long wick on the white candle which suggests selling later on in the session today.  This adds a cautionary tone in an otherwise positive picture.


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