CapitaMall REIT Making A Double Bottom

In the last chart on the 27th of Nov, I mentioned that CapitaMall was downtrending. Also to quote the entire paragraph for refresher sake, I posted that "the past three days have seen price seemingly stabilizing at $1.86 support, in hopes of rebounding upwards. A break below this may see price retreating to the next support at $1.81. To break out of the downtrend, price must head above $1.93. Only then can we expect price to head higher." See CapitaMall REIT in Trouble for further discussion.

On the 30th of Nov, prices dipped to $1.82 but broke out of its downtrend on the 2nd of Dec, closing at $1.96. After stabilizing for the next 2 weeks at $1.94 thereabouts, prices dipped back down to $1.85 on lower volume than the last dip to $1.82 suggesting that prices had reached a bottom. 

Today's charts indicate that a double bottom may have indeed been formed and prices are set to head upwards. Furthermore, indicators are all favourable. MACD and Stochastics have given a buy signal. RSI and OBV looks to be heading higher while MFI seems to have bottomed as well. This increases the odds of prices rising. Support seems to be at the 14 day moving average at $1.90. Resistance remains at $1.97. The crossing of the 14dma with the 200dma should send prices higher but is not in sight at the moment. 

Again with a yield of only 4.85% and price to book ratio of 1.28, I'm not interested in the stock however, traders interested in capital gains may want to consider this. 

Not vested.

~K

CapitaMall started at Overweight by HSBC, target $2.22
Friday, 10 December 2010

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