Home > market, sg, singapore, stock, ta, technical analysis > Trend weakness spotted in CapMallAsia

Trend weakness spotted in CapMallAsia

In trading, divergence is a technique or rather as a alert system informing that the trend might not continue. It itself should not be use as a buy or sell indicator even though it can be done. This not a 100% winning strategy as often like many other indicators, many times divergence will also fail.

Looking at the chart, the price is currently supported by the trend line and horizontal support as well as 20 day moving average. Divergence us seen at MACD histogram, RSI and stochastic.

I am still more biased towards the long side and once the resistance cleared, the divergence will be broken and more upside may be seen.

For now, CapMallAsia might be moving sideway to consolidate since it has struggled to break $2.40 resistance. And if $2.28 break, the next support will be at $2.22

capmallsasia as of 24mar2010

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