Capitamall Asia – Continuation of its downtrend.

Trend: Downtrend, 20ma down, MacD below 0

Support: 2.19

Resistance: 2.26 (20 & 50ma close), 2.33

Observations:
Candlestick – 3 black candles with upper shadows
Histogram – Many R. Bearish divergence is already seen and confirmed
RSI – Slightly above 30%. Bearish divergence is confirmed
Stochastic – Bullish crossover yet to form and is over sold.
Bollinger Band – Out of lower band.

Conclusion:
Capitamallasia had a good debut for its IPO but now, it seems to be struggling to stay above its IPO price. Good value to go long now? I doubt so. Why? Because the trend is now downtrend.

Although it is now resting on support of 2.19 level, the candlestick for the last 3 days still indicates that selling yet to finish. Stochastic also still shows the bearish momentum. But on the other hand, the price is getting more oversold, hence, I can’t rule out a possible rebound here. A rebound is what I need to see before I will initiate a short position.
The resistance level for a possible short position will be around 2.26 levels as 20ma & 50ma could confluence at that level when the rebound happens. I will wait for a formation of bearish reversal candle or bearish signal from indicators before initiating a short position.

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