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CapitaMalls Asia: Will It Resume The Uptrend?
Trend Spotting | 01 November 2013
By: Robin Han
Articles (102) Profile

Making profit in the recent market has been difficult because the Straits Times Index (STI) is not trending. The STI has been consolidating in the 3,190 to 3,240 zone over the past two weeks.

Nonetheless, the blue chips have shown some strength – compared to the many penny stocks that have fallen, most blue chips have held up well and this is a sign of strength. Amongst them, CapitaMalls Asia is a counter that one may want to monitor.

The counter has broken the important resistance level of $2.00, and its movement indicates a mid-term uptrend. After breaking resistance trend line, it may move up further. One may consider buying on weakness during pull back.

However, given that the US market may pull back further in the next few days leading local blue chips to follow, one will need to be more conservative on the entry.

From the fundamental perspective, the company had just released its quarterly earnings on 30 October. The results were not fantastic but acceptable, price actions showed that they came in within market expectation. As such, the counter is not likely to suffer unexpected sell down from earnings disappointment in the next couple of months.

Daily Chart Of CapitaMalls Asia

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.


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