CapitaMalls Asia: Steady in a sea of red.

For a brief few minutes, its share price overcame gap resistance at $1.75, touching a high of $1.76. Ultimately, gap resistance proved too strong as price closed the session at $1.75. Volume was lower than the preceding session which is probably why price action lacked the impetus to close above gap resistance.

Nonetheless, in a sea of red, closing unchanged is a sign of strength. Both MFI and RSI have turned up. While it is still too early to say, we could be seeing the formation of a higher low on the MACD. It would be clearer by end of the week. This could reinforce the positive divergence we are witnessing in the weekly chart.

Overcoming the gap resistance convincingly could see the share price testing resistance at $1.83 and perhaps even $1.88. A more bullish scenario could even see the longer term downtrend resistance approximating the declining 100dMA tested.

Related post:
CapitaMalls Asia: More upside after gap cover?

Citi upgrades CapitaMall Trust to Buy from Hold. It estimates the Illuma acquisition would increase DPU by approximately 1%, given its low financing cost of 2%. 
Wednesday, 02 March 2011

© 2011 - The Edge Singapore

Golden Agriculture: Downtrend once more.

Golden Agriculture started the day at 69c, touched a low of 67.5c before closing at 68.5c, forming a black candle with a long lower wick. That this formed within a preceding white candle has a semblance of a bearish harami. The bearish tone is reinforced by the fact that the downtrend resistance is at 69c which means that the counter's share price is once again in the embrace of the downtrend which started on 4 Jan.

Although price might go higher to retest previous session's high of 71c, the probability of further weakening is rather high. Why a retest of previous high at 71c and not 72c as provided by the 100dMA mentioned in earlier blog posts? Well, traders are going to remember 71c as the price they could have sold at but didn't. So, 71c is now a psychologically important resistance level.

A weakening in price could see the 200dMA, now at 64c, tested once more as support. If it holds up, I could possibly go long on the counter once more. Otherwise, the next support is the low of 23 Feb at 61c. Making sure that support holds up before going long is the way to go.

Related post:
Golden Agriculture: A one day gain of 7 to 9.4%.