NOL: A white candle.

A white candle formed on NOL's chart today. For most of the day, I saw a black spinning top after its share price gapped down at the start of the day. So, the rather large buy up, after market closed, which pushed up NOL's share price to close 1c higher was somewhat surprising.

However, the white candle was formed on lower volume compared to the previous session's black candle. Share price could possibly have risen due to short covering and not because of an abundance of buyers.

The white candle also did not manage to cover even half the length of the previous day's black candle. So, a white candle is nice but it might not mean that NOL has found its base.

Share price did touch a lower low today at $1.41 while the MACD flattened. This is encouraging. If the MACD should turn up clearly in the next session or two, we would have the positive divergence which I mentioned in my previous blog post on NOL.

Now, the MACD is a lagging indicator which is the case with other momentum oscillators. So, I would use Fibo lines to help suggest where I might find stronger supports for NOL's share price in case of further weakness.

I see the golden ratios at $1.39, $1.375 and $1.36. I could possibly add to my long position at these prices if they were ever tested as the chances of a positive divergence forming are rather good.

CapitaMalls Asia: TA update.

CapitaMalls Asia's share price did not experience the kind of explosive upswing Capitaland's did in the last session. However, it looks promising too in a subdued way as volume was pretty decent as price moved up a bit.

Daily:

 Weekly:

We could see gap closed at $1.55 in time. This would probably also coincide with the declining 50dMA sometime next week. Judging from the highs in the last two rebounds, the declining 100dMA or 20wMA are the ones we should keep an eye on.

In a very strong rebound, we could see price going above the 100dMA and testing the downtrend resistance. Regular readers probably know what I would do in such a case.

NOL: TA update.

NOL has been one big disappointment. So, is this the fault of the counter? Nope. We can only be disappointed if we have expectations and when they are not met. It was a mistake and I will accept it as such.

However, downtrends are rivers of hope. NOL's share price could be overdue for a rebound. This does not mean that I think a rebound is imminent though.

Look at the daily chart and we could see the potential for a double bottom set up or a positive divergence. Wait to see if the recent low of $1.44 would be tested again. If it were to happen on much thinner volume before turning up, it would be good news for bulls. Or if a lower low in price were to be formed with a higher low on the MACD, we would have a positive divergence. In either scenario, we could have the conditions for a rebound which could test resistance provided by the declining 50dMA which coincides with the downtrend resistance.

In a downtrend, sell at resistance.

Capitaland: TA update.

What an amazing run up Capitaland's share price had in the last session. That the run up was accompanied by huge volume is good news for bulls. Short sellers were probably scrambling to cover their positions in the last session, surprised by the buying strength.

Anyone who added to their long positions or initiated one in the last few sessions would be wise to search for exit points, if they have not done so already. Why? Make no mistake, Capitaland's share price is still in a downtrend. Only if it were to break out of resistance provided by the declining 100dMA in a convincing manner could we say that the downtrend is broken.

Resistance provided by the declining 100dMA? Divest at resistance? In a downtrend, that would be conventional wisdom and something I would do.