CapitaMalls Asia: Moving higher?

In a sea of red, CapitaMalls Asia is one of few counters which gained in today's session. The company will release its financial results for the full year ended 31 December 2010 on Thursday, 17 February 2011 before trading hours. I am hopeful that results would be positive.

Connecting the lows of 31 Jan and 14 Feb gives us an uptrend support and price traded above this support today. $1.95 is a minor resistance and I expect it to be taken out if volume were to expand in the next session. The momentum oscillators are showing positive signs and there is a nice chance of price moving higher.

The longer term downtrend is still intact and if we connect the highs of 11 Dec 09 and 7 Oct 10, it is amply clear. Multiple resistance levels must be overcome for this counter to move much higher in price but none as foreboding as this long term downtrend resistance line.

What am I going to do? I will wait for the results on Thursday and see how things turn out. My exposure to this counter are at the prices of $1.85 to $1.92.

Related post:
CapitaMalls Asia: Bouncing off $1.88 support.

AIMS AMP Capital Industrial REIT: Oversold.

Someone asked me why did I say that 21c is technically a strong support for the REIT. I didn't take the time to elaborate on this last night. It is where the rising 50wMA is approximating.

I put in an overnight buy queue at 21c which was filled when the session today started. In spite of massive selling pressure, price closed down one bid only at 21.5c. The selling pressure is well absorbed as the REIT's unit price demonstrated admirable resilience.

I, however, am not entertaining any grand delusions that price might not weaken further once the counter goes XD. Using Fibo lines gives us a clue as to where the supports would be next. 20.5c is where we find 123.6% and 20c is where we find 138.2% as well as 150% (which is at 19.8c). As both 38.2% and 50% are golden ratios, I expect 20c to be a very strong support level if ever tested.

When would I consider selling my investment in the REIT? Well, I still have a  fair value estimate of 25c per unit as the latest development has minimal impact on the numbers I came up with last year in December. So, I am not a seller at the current level but I am definitely a buyer.

As an assurance that the REIT's financial health is not taking a turn for the worse, Moody's Investors Service says Ba2 rating for the REIT, which incorporates some financial flexibility, is appropriate. Read report dated 15 Feb 2011 here.

Related post:
AIMS AMP Capital Industrial REIT: Acquisition of Northtech.

STI off 1.0%; fund flows back to developed markets - Kim Eng
Tuesday, 15 February 2011

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