Capitaland – Tradeable?

Recently, close family members of mine have been talking about how low Capitaland has come and now is a good time to buy it. Capitaland is a STI component stock, it’s a blue-chip, a GLC and is in the property sector which is a booming sector in Singapore. So, I took a look at the charts and saw that Capitaland might be a good stock to trade for the short-term. Capitaland went up till $4.20 in Oct and closed at $3.69 yesterday.

In the daily chart, a “bullish harami” was formed on 1st Dec 2010 at a critical support level and the candles bounced off the Bollinger bands as well. There is a MACD crossover and RSI just crossed the 30% mark from the oversold region.

In the weekly chart, a “bullish harami” might be forming as well. We can only know for sure on Fri when market closes.

So, is Capitaland a good stock to trade in the short-term (maybe 3-4 months) based on the price history?

Advertisements

6 thoughts on “Capitaland – Tradeable?

  1. Hey FFN, looked at your charts, and used chart nexus to plot some other TA’s. MA 20 /50 days are both higher than stock price, PSAR is bearish (above stock price), MACD though blue line crossed red, still below 0, Stochastic below 50% and blue crossing below red. Aren’t these bearish signs? Also, its in a downtrend and hence shouldn’t we not “catch the falling knife?” Plus, looks to be at it’s downtrend resistance anyway.

    Look forward to your input.

    cheers.

  2. Hey Isaac,

    Thanks for your input. I’m still learning with regards to TA. It looks like it is caught at the resistance of $3.72. It touched that price today and closed at $3.68. I will monitor Capitaland closely.

  3. Agree with isaac of the bearish signs, the 6, 12, 24 and 32 day MAs are still generally on a downward direction, although the 6-day MA overlap the 12-day MA a little today. For me, the most worrying thing is that this stock has been moving sideways between 3.68 to 3.71 of closing price for 6 trading days, and this could indicate strong resistance to move up. If price moves down below 3.68 tml, TP 3.62 buy, but if it break above 3.72 tml, it is a stong buy call…just my two cents worth :)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s