CapitaMalls Asia: A sustainable reversal?

This counter formed a white spinning top today as it broke resistance at $1.95 to touch a high of $1.97, which is where the declining 50dMA is approximating. Of course, a spinning top is a sign of indecision and it was on the back of increased volume. It is not a strong bullish sign. The tug of war between bulls and bears is still significant here.

The uptrend which started on 20 Dec is still valid and the trendline support is at $1.89. With the 20dMA at $1.90, this is where we would find initial support in case of a pull back in price. This support should hold and if it does, we could be looking at an ascending triangle pattern. This would give me a target close to where the 100d and 200d MAs are at, approximating $2.08 and $2.10 currently.

OBV continues to climb, suggesting continuing accumulation. MACD has risen once more above the signal line and could be ready to cross into positive territory. The MFI and RSI are both rising after successfully testing 50% as support. Things are looking good here and I would accumulate on weakness.

Related post:
CapitaMalls Asia: $1.90 resistance turned support.

Golden Agriculture: Short term uptrend broken.

The negative divergence between the rising share price and falling MACD which we have observed for weeks is showing its colors. Price broke support at 78.5c provided by the 20dMA on 10 Jan and, in the last session, fell to test support at 76c provided by the rising 50dMA.

Price falling below the 20dMA suggests that the shorter term uptrend could be over. Drawing a trendline support linking the lows of 8 Oct and 24 Nov verifies this as price closed below this support for the first time in months.

How low could the price fall to? No one can say for sure but drawing a trendline support linking the lows of 30 Sep and 8 Oct coincides with the rising 100dMA and, to me, this suggests a much stronger support at this level and would be a more ideal entry point. The 100dMA is currently at 68.5c.

Fundamentally, I believe that demand for Crude Palm Oil would remain strong with higher consumption in Asia. I would look out for a chance to accumulate on any sharp pullbacks.

Related post:
Golden Agriculture (3 Jan 11)

CapitaMalls Asia: $1.90 resistance turned support.

CapitaMalls Asia's $1.90 former resistance was tested today as support. A resistance once broken could become support but this always needs confirmation. Today, we have confirmation. My buy queue at $1.90 was filled.  This was a smallish transaction which I see as a hedge in case $1.90 held up as support.  This is a case of averaging up as my original long position was bought at $1.85 earlier on as the share price formed a bottom.

Usually, once support is confirmed, we would see more people buying in as they feel more confident. However, buying at support might not be available by then and any buying would be done at higher prices. With price closing once again at $1.92 after touching a high of $1.93, let us see how things turn out next week. Expect initial resistance at $1.95.

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CapitaMalls Asia: Plague, no more?

Healthway Medical: Back at support.

On 20 Dec, I said "Healthway Medical closed the gap today at 15.5c. Am I expecting more downside? Share price is pulling back from almost overbought conditions and I do not expect any huge downward movement. Notice that the decline in share price has been on the back of reducing volume." Price closed at 15.5c support yet again today.

The MACD is approaching zero. Would it recover or would it cross into negative territory? The MFI has emerged from oversold territory and is rising gently, suggesting a return of demand, although weak. Volume has been relatively low.

The RSI has been forming higher lows which suggest a strengthening in terms of buying momentum based purely on price. The OBV is flat which suggests a lack of distribution and accumulation. Verdict? This counter seems to be consolidating and, at this point, it could go either way. I am not doing anything here.

Related post:
Healthway Medical: Closed the gap at 15.5c.