CapitaMalls Asia: Shopping spree planned.

"CapitaMalls Asia (CMAL.SI) could spend as much as S$3 billion to develop or buy shopping malls in Singapore, Malaysia and China, by using some borrowings on top of the S$1 billion cash that it has, partly from the proceeds of listing CapitaMalls Malaysia Trusts (CAMA.KL), the local press reported, quoting CapitaMalls' chief executive." Thursday, 29 July 2010, The Edge Singapore.

 
This bit of news sent the share price of CapitaMalls Asia up today to close at $2.10 which is the resistance provided by the flat 50dMA.  The MACD has risen above the signal line in negative territory. MFI shows a sustained demand.  OBV shows accumulation.  Indeed, volume expanded more than three times over the previous session and is the highest since 12 Feb 2010. If the momentum continues, we could see price rising to retest the downtrend resistance which coincides with the declining 100dMA at about $2.16.

China Hongxing: Going higher?

China Hongxing breached 16c resistance and touched 16.5c briefly.  Closing at 16c, it is still resisted by the declining 200dMA.  This is a long term MA and unless volume expands significantly with any upmove, a breakout from the 200dMA is unlikely to be successful.

If we look at the volume, it has been declining as price tried to move higher in the last few sessions. Although not significantly so, it is nonetheless a negative divergence and calls for caution.

OBV is still rising strongly which means accumulation is still ongoing.  MFI and RSI have both risen high into overbought territories. Momentum is still positive but the risk of a pull back is definitely higher now.

Taking some profits off the table would seem like a prudent thing to do and if price goes parabolic in the next session, I would divest more as parabolas are usually unsustainable.

Related post:
China Hongxing: Target hit.