CapitaMalls Asia: At resistance.

Volume expanded visibly as price moved higher in the last session, touching a high of $1.75 before closing at $1.72, forming a white spinning top in the process. I don't like a spinning top in the current picture as it suggests indecision. Also, closing at $1.72 means that the downtrend is still intact.

If the 20dMA should be overcome in the next session, the downtrend would have been broken and we could see price rising to test $1.83, a previously strong support which should be a strong resistance now. In the event that $1.83 were breached, price could touch a high of $1.87. My refusal to sell in the recent price weakness would then be rewarded.

However, a continuation of the downtrend would find support at $1.60.

Related post:
CapitaMalls Asia: Green in a sea of red.

First REIT: Buying more?

I like First REIT and it is a large investment in my portfolio. Although, fundamentally, I think 72.5c/unit is a fairly attractive price, technically, it looks rather weak. This is why I have not added to my long position in the REIT in the current environment.

Technically, the REIT tested resistance at 72.5c in the last session on the back of low volume. If it did manage to break immediate resistance, it would meet with resistance at 73.5c and 74c. If volume stays tepid, chances of resistance at 72.5c being overcome are rather low. Of the 450 lots which changed hands in the last session, 321 lots were sold down at 72c.

The downside proposition looks stronger. The rising 200dMA should provide stronger support at 70c which is a psychologically important round number. I would probably add to my position closer to this level. Having said this, I might be seeing the beginnings of positive divergences on the daily chart and we could see price rebounding quite smartly if they are valid.

Referring to the weekly chart, it is quite obvious that the uptrend is intact and this, to me, means that any short term weakness is an opportunity to accumulate on the cheap.

Related post:
First REIT: Is the bear just resting?