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?