CapitaMalls Asia: Buy signal.

CapitaMalls Asia has a buy signal on the MACD histogram. A white candle without an upper wick was formed today on slightly higher volume as price closed at $1.96 and this has a bullish tone.

The MACD has been forming higher highs and is rising in positive territory. The MFI has formed a higher low as it broke resistance at 50% to move higher. Since 17 Dec 2010, the OBV has been moving higher although in a choppy manner. So, there is continual accumulation.

The 20dMA at $1.93 is resistance turned support and we could see price move higher.  Immediate resistance is at $2.00 which is where we find the upper Bollinger band and $2.03 which is defined by the third downtrend resistance line drawn from the high formed on 6 Oct 2010.

Breaking $2.03 on high volume could see the counter moving higher but bearing in mind that the longer term downtrend is still intact, I would rather err on the side of caution and divest most of my long position at resistance levels identified. Where is the longer term downtrend resistance line now? At approximately $2.14.

Related post:
CapitaMalls Asia: Moving higher?

Raffles Education: Doji at 28c.

That selling pressure has eased is quite obvious. The MFI has turned up somewhat when it looked as if it was destined to fall into oversold territory. The RSI is rising just a tad in oversold territory. The MACD is just into negative territory and things are looking too marginal to say momentum has turned negative at the moment. Is there a chance of a rebound?

Believe it or not, the uptrend for Raffles Education which started on 21 Dec 2010 is still intact. The trendline support is rising towards 27.5c which is the low today and it would soon reach 28c in the next week. So, what does conventional wisdom say? Buy at supports in an uptrend.

It could also be said that price has been retreating on declining volume and that the doji formed today on relatively low volume is a possible reversal signal. All good but we will need confirmation tomorrow. That's the way of TA. Always needs confirmation.

What would AK71 do? Nothing. Why? Well, the declining 200dMA is at 29c or so. That could become quite a strong resistance given the bearish sentiments with China possibly increasing interest rates again soon to weaken inflationary pressures. Raffles Education's ambition of becoming a real estate developer in China could be a victim of bad timing.

When in doubt, I stay out.

Related post:
Raffles Education: Support at 30c.