Capitaland

It appears this rights issue is coming round again. This time they hope to shore up their capital for bargain hunting. This should not be seen as a bad thing though. The market may have overreacted a little though. Let’s see what happens.

Technically there was heavy dumping and it took the counter straight to my TP. Will it break it? Look out for 2.28. This is an ideal short position when it broke 61.8% with higher volume and it re-tested it as a support turn resistance successfully.  Going short now is no longer ideal unless 2.28 breaks convincingly. Those holding shorts can look at this level for some profit taking.

The S&P has largely maintained its support at 815. You’ll see 818 is where 61.8% support is and it pretty much held it so far. Breaking this will be disastrous.  Watch for resistance at 842 which failed to clear despite the very weird rally yesterday. I feel market will need time to digest and remember how screwed we are. MACD is in -ve position and this could be seen as a bear rally, until upsides are confirmed. A trend will show itself eventually and it will be prudent to watch which it will be and ride along. What it does look like now is some sideway consolidation in a bear flag formation with decreasing volume. It is in formation, ie it has NOT formed yet.

The STI has gap covered its gap support successfully and is supported by the lower band. Resistance hovers above while support holds from below. Eventually one will give way too. The good news is, the ‘big big ugly’ formation I was talking about does not seem to be developing anymore.  61.8% support remains at 1658.

I am beginning to eye ocbc but I already have postions on a few counters including UOB and the STI. We’ll see.

Back to my regular holiday program! See u all folks!