Sunday, March 7, 2010

Capitaland Technical analysis

Decided to do a TA on Capitaland. Any comments would be appreciated.

Do click on the chart to take a better look.

As you can see, prices have broken down from a plateau and double top and are now trading in the 3.62-4.00 region. There is an unfilled gap created on 22 Jan by a large move downwards. It remains to be seen whether prices will recapture that region. I do not think it will be easy as there is some short-term resistance around 4.02 to clear first. 4.02 was tested unsuccessfully after which prices retreated to the 3.70-3.80 level. The more times a resistance is tested, the more formidable it becomes. There is some fairly strong support at 3.60-3.70

Prices are just above the 200-day moving average at 3.89, which should provide short-term support.

As for the indicators, MACD is still trending up above the signal line, which is slightly bullish. RSI is neither overbought or oversold at 53%.

For the next week, I expect Capitaland to retest the 4.00-4.02 region. How it performs after that will depend on whether prices can clear the resistance at 4.02. I expect the possibility of short-term upside to be greater than the possibility of downside.

1 comment:

  1. I like your technical analysis on stocks but too bad u do not blog often. U must be a very busy person :P