Olam: Channel trading?

Olam could be seeing the early days of trading within a channel. Continuing weakness in price could see support at $2.68 tested.

ADX has been declining and the downtrend has weakened. The MFI and RSI could both test 50% for support soon. The MACD continues to rise, although in negative territory. Underlying momentum is strong and there is demand. To verify this, today's black candle day was on the back of relatively low volume.

See if a picture of low volume pullback should continue. Buying at supports could be very rewarding if this were the case.

CapitaMalls Asia: Dual listing failed to excite.

News of the proposed dual listing in Hong Kong didn't send its share price higher. In fact, it closed lower at $1.74 after closing the gap at $1.72.

The ADX continues to decline and the downtrend has definitely weakened. This does not automatically mean that the share price is going higher. We could be seeing the start of rangebound trading too. So, is it time to buy more? The volume for half a day's worth of trading is quite high and I would not be surprised if there should be more downside. Immediate support in the next session is at $1.70.

I will see how the share price moves in the next few days. If a higher low in share price should be formed and if the technicals are supportive of a move up, I could possibly increase my exposure to this counter. There could be some near term weakness in this counter's share price but over a longer term, the prospects could be more benign.

Related post:
CapitaMalls Asia: Proposed dual listing in Hong Kong.