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CapMallsAsia first retracement

CapMallsAsia is currently making its first retracement after a 5 months long symmetrical triangle formation breakout. Look out for  resistance turn support 2.20 to hold with 2.30 as the immediate minor resistance with target price of symmetrical triangle at 2.40 which confluence with the horizontal resistance.

What’s good about the technical right now is the price is staying on top of the moving averages. Meaning the MA have to move up as long as the price stays above the MAs.

Currently, the counter is overbought at several indicators and hence it will be good to wait for a trigger from MACD histogram or stochastic.

Being said this, overbought can still be overbought and as long as the support hold, price will have to move up. This is a fundamentally over-valued company, but price action is moving up slowly. I suspects there are some deals that have not been disclosed and insiders are accumulating.

On the side note, seems like the government policies is not quite successful as most of the property counter actually moved up after the announcement. With elections coming up, seems like a tougher measures have to be in placed. Or is it expected the policies to revert after the election?

Vested interest. Disclaimer applies.

2010Sep-CapMallsAsia-symtri

Symmetrical Triangle breakout

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