CapitaMalls Asia and AusGroup.

CapitaMalls Asia: Price closed below the trendline support today at $2.29, after touching a low of $2.28 (the 38.2% Fibo line).  Technically, this is supported by the declining 50dMA.  The decline is on the back of low volume with the MFI and OBV more or less unchanged.  These signs suggest that a benign low volume pullback is taking place.  However, this does not mean that price would not continue to drift downwards.  If the $2.28 support is broken, the next support level is at $2.25 which would see me buying more.

AusGroup:  Nice up day with price closing at resistance provided by the 50dMA at 60c after hitting a high of 61.5c on the back of increased volume.  MFI and OBV have both turned up which suggest that buying momentum and accumulation are both moving up a notch. 

We have a buy signal on the MACD as well and it seems poised to cross above zero. Resistance is provided by the merged 100d and 200d MAs at 63c. Initial support is at 58.5c. A negative is the long wick on the white candle which suggests selling later on in the session today.  This adds a cautionary tone in an otherwise positive picture.

Charts in brief: 23 Mar 10.

Golden Agriculture: 56.5c, up 0.5c. The rising 20dMA has been doing a great job of supporting the price so far.  Buying at the initial support of 55.5c yesterday and a bid higher at 56c as a hedge, I am now waiting to buy more if the price corrects to 55c and 54.5c.  No satisfaction as yet.  Lower trading volume since the high formed on 10 March suggests that this is a low volume pullback.  Looking at the OBV, we do not see any obvious distribution.  Looking at the MFI, 50% appears to be functioning as a support.  The underlying support is intact.

Healthway Medical: A low volume black candle day as price closed unchanged at 16.5c.  MFI continues to decline and a lower low is a forgone conclusion, suggesting that the buying momentum is weakening yet again.  OBV has flattened and this suggests a temporary respite from distribution activities.  16c remains the support to watch.

CapitaMalls Asia:  $2.32.  I did a FA for this counter recently when a reader asked me about it.  This is the first time I am doing a TA for this counter as I think it is beginning to look interesting technically.  The counter is fundamentally strong and, technically, I see a fairly good entry price at $2.30.

Looking at the OBV, it is fairly obvious that distribution peaked on 11 Feb 10.  There has been a slow but gradual accumulation since then.  Despite a sharp decline in the MFI since 12 Mar 10, the OBV has been rising gradually.  This suggests that even as the buying momentum declines, the weakness is being seized to accumulate more shares here as weak holders sell out.

Price action went momentarily below the trendline support today which is almost where the 50dMA is at $2.30.  $2.30 is also the 50% Fibo support.  There is a good chance that the price will move higher from here as the 20dMA is rising and there is an uptrend channel since the price bottomed in February at $2.19.  The target of the next move up could be estimated by looking at the trendline resistance which I have drawn by connecting the two recent highs.  In time, we could expect the top of a larger base formation at $2.55 to be tested.

Downside seems limited.  In the event that the price moves lower, supports are at $2.28 and $2.25, the 38.2% and 23.6% Fibo lines.

Charts in brief: 22 Mar 10.

Healthway Medical: Decline continues as the MACD makes a bearish crossover with the signal line.  MFI's decline is accompanied by a decline in OBV.  This accentuates the bearish picture.  The 50dMA might be tested next at 16c.  Technically, 16c should be a support to watch.  Please see: Healthway Medical: A beautiful symmetry again.


Golden Agriculture: Price hits first support level at 55.5c today.  Even as the MACD makes a bearish crossover with the signal line, the MFI and OBV remain more or less unchanged.  The technicals suggest that there is weakness but no strong selling pressure.  I would continue to accumulate at supports as we might see 55c and 54.5c tested. Please see: Golden Agriculture: Approaching supports.

AIMS AMP Capital Industrial REIT: We have a buy signal on the MACD today as price rose 0.5c to close at 22c.  It remains to be seen if the flat 50dMA at 21.5c is resistance turned support.  Top of the base formation is at 23c.

Saizen REIT: A friend mentioned to me that it is very hard to get units of Saizen REIT at 16c these days.  Today, some lucky fellow queueing to buy at 16c got 3 lots.  Saizen REIT's daily MAs continue rising gently.  MFI is in the oversold region.  In the weekly chart, the Bollinger bands are beginning to squeeze and this bears watching.  Technically, the uptrend is intact and suggestion is that the picture might not remain placid for too long.

LMIR: Although the price stayed at and above the 49c support throughout the day, MFI and OBV declined sharply with the price moving down to 48.5c minutes before closing and then 48c in a post closing trade.  That the decline was on the back of increased volume suggests that the price might go on to test the previous low at 47c and the rising 200dMA 46c.  I would accumulate more then.  Please see: LMIR: Weakness is an opportunity.

Genting SP: Obvious downtrend.

Genting SP is in an obvious downtrend.  On 5 March, I said: "If the 50wMA (93.5c) is taken out in the next session, we might see the price rising to the 20dMA, which is descending sharply and should be at 97c then. All eyes would be on whether the price action would be able to break through the 20dMA to close higher, failing which, a resumption of the downtrend is more likely. I still see strong supports provided by the 100wMA (74c) and the 200wMA (70c) then."

Genting SP's price rose past the 20dMA and reached a high of 97.5c on 17 March, forming a white spinning top in the process.  The higher high formed on the MFI shows that buying momentum has strengthened recently.  However the OBV's rise does not mirror the steep fall weeks ago which suggests that the recent accumulation is weak.

On 15 Mar, I said:"This counter has been enjoying a revival lately but on decreasing volume. Daily volume has been lower with the price moving higher since 5 March, the day when price and volume spiked up. This suggests that the buyers are, probably, mostly shortists covering their positions. This is not to say that the price cannot move higher but without a significant number of new participants coming in on the long side, any move upwards would lack sustainability."  The negative divergence in price action and volume is still quite obvious and my earlier observations are still valid.

In the event that price does move up higher, immediate resistance is provided by the 200dMA at 99.5c.  Declining 50dMA is at $1.05.  Lady Luck could be quite generous on occasions.



Related post:
Genting SP: Stale bulls' second chance.
Charts in brief:15 Mar 10.