Capitaland – Will it be bottoming or consolidating for further downside?

Trend: Downtrend slightly sideway, 20ma nearly flat, MacD below 0

Support: 3.47, 3.30

Resistance: 3.62 (20ma), 2.74 ( 50ma close)

Observations:
Candlestick – White candle with upper and lower shadow
Histogram –1R after 2G. Bullish divergence is seen.
RSI – around 40%. Bullish divergence is seen.
Stochastic – No Bearish cross yet. At around 70%.
Bollinger Band – Trading at closer to lower band.

Conclusion:
Capitaland’s action for the past few days had became uninteresting as it start to form as a sideway movement. The sideway range is confined by 3.47 support level and 3.62 resistance level. This movement could be due to previous formation of bullish divergence from Histogram and RSI. Which means the prior downtrend could have changed to sideway or potentially turning to uptrend.
To confirm the formation of uptrend movement, it must first break the sideway resistance of 3.62 and also break the recent high of 3.74 level, in order to achieve a higher high. 3.74 could be very strong resistance to break as 50ma could confluence with the level.
On the other hand, as the prior trend is downtrend, current movement could be a consolidation for further downside. But to confirm the continuation of downtrend, it must break the support of 3.47 level before it could seek the next support of 3.47.
Currently, the movements from indicators do not give a very clear indication of which side Capitaland is breaking. This is a sign of sideway movements.

What to watch out for this week:
1) Breaking of 3.62 resistance
2) Breaking of 3.47 support

Trading strategy to adapt right now:
- Stay a side to wait for clear breakout of either the resistance or support level.
- Long when resistance breaks. Short when support breaks.

*Disclaimer applies