CapitaMalls Asia: Sell on news?

The market seems unimpressed with CapitaMalls Asia's results.  Price tried moving higher, touched a high of $2.18 before declining to close unchanged at $2.16. The MACD is back in positive territory which suggests that we are once again seeing positive momentum in price movement.

Although the rising MFI suggests a strong demand, the OBV has turned flat in the last two sessions which suggests that neither accumulators nor distributors have the upper hand. Therefore, the lower volumes in the last two sessions as the price tried to move higher should be taken as a strong cautionary note.

Having said all these, it is worthwhile noting that price has closed above the 100dMA again even though it's a black candle day.  If the 100dMA is confirmed as the new support, price could move higher.

CapitaMalls Asia achieves 1H 2010 net profit of $209.8m
Tuesday, 03 August 2010

© 2010 - The Edge Singapore

Genting SP: Bearish engulfing candle.

Genting SP spots a bearish engulfing candle today.  This is a big black candle that envelopes the entire candle of the previous day.  This is extremely bearish as it indicates that price started the day higher but met with resistance and turned down to close lower than the previous day's low. That this was accompanied by high volume makes it more ominous. The bearish situation is backed up by a sell signal on the MACD histogram and the MACD has turned down towards the signal line.

However, even with the massive sell down today, the uptrend is still intact.  Look at the support line I labelled "uptrend support 2".  This uptrend approximates the position of the 20dMA.  Could price bounce off this support in the next session or continue to decline to test the many times tested resistance turned support at $1.20?  Although the MFI has turned down, the uptrend is intact.  OBV has turned down which indicates some distribution took place today.

Genting Singapore down 3.9%; $1.20 support. Traders attribute selloff to market chatter of company planning share placement. Gaming group declined to comment when contacted.
Tuesday, 03 August 2010

© 2010 - The Edge Singapore