Marco Polo Marine: Will buy more on pull back.

Marco Polo Marine is a turnaround story which is simply at the right place and at the right time. Of course, they have also positioned themselves to ride the next wave up. In the shorter term, however, we could see some weakness in its share price.

A retracement could see share price declining to the top of the recent base formation at 37c, give or take 0.5c, where we should see very strong buying interest. The formation of a white candlestick with a very long upper wick on the back of heavily increased volume in the last week suggests that a pull back is a strong possibility.

Weekly chart.

I would definitely buy more if support at 37c should be tested as the reaction to Marco Polo Marine's much improved numbers including the listing of its subsidiary in Jakarta seemed relatively muted. Marco Polo Marine's valuation is inexpensive compared to peers even at the high of 43c a share last week.

When Marco Polo Marine's numbers continue to improve and good news continue to be announced, more market participants will become believers and buy the stock. That is when we would see a truly breathtaking winning streak.

Related post:
Marco Polo Marine: Longer term buy on weakness.

CapitaMalls Asia: Buy more at $1.93.

Thanks to accumulation at much lower prices, my long position in CapitaMalls Asia is firmly in the black. The question I am faced with now is whether to sell.

Breaking out of a double bottom formation almost one year ago, the share price of CapitaMalls Asia has been climbing a wall of worries. On the weekly chart, the uptrend is clear to see. Could this continue? It could, of course.

Weekly chart.

However, with the MACD histograms not forming higher highs, we could see a pulling back in share price. When? That is harder to say.

This possibly impending weakness is, however, likely to be short lived as the CMF shows smart money pouring back into the stock. Hence, a pull back to support is likely to see strong buying interest.

Drawing a trendline to connect various lows, it is easy to see that the 20w MA is the support to watch. Using Fibo lines, we get a rough idea of where is the support in dollar terms in case a retracement should take place. In this case? $1.93 seems likely.

Remember, as always, that TA is about probability and could help to optimise returns but there is no certainty.