Capitaland – Resting at 200ma

Trend: Uptrend, 20ma up, Macd above 0

Support: 3.91 (20 & 200ma), 3.81 (100ma)

Resistance: 4.12, 4.20

Observations
Candlestick – Dragonfly like doji testing 200ma.
Histogram – 4Rs. No Bearish divergence is seen.
RSI – Around 60%. No Bearish divergence is seen.
Stochastic –No Bullish crossover yet.
Bollinger Band – At Mid band.

Conclusion:
Capitaland has been retracing for the past few days due to the fears in the market sentiment which forces the price to drop quite significantly. Will Capitaland be able to sustain its uptrend despite the bearish sentiment right now?
The trend of Capitaland still remains as uptrend and is current trading at a support level of 3.91 level. This support level could be a strong level as it confluences with 20ma and 200ma. But looking at the indicators, none of them had yet to trigger any bullish signals, however, the positive aspect of its chart is that yesterday it had formed a dragonfly doji alike candle. Yesterday’s candle showed the indecisiveness of the bear and it tells that Capitaland is testing a strong support level. What is lacking right now is a confirmation candle to signify a reversal point.
On the other hand, as numerous property stocks were either showing bearish divergence signs or downtrend. Capitaland might not be able to fight off the sector weakness. Hence, if Capitaland fails to hold 3.91 level, the next support level of 3.81 could be crucial. If 3.81 level fails to hold, it means that the price is going for downtrend.
In conclusion, the trend of Capitaland still remains uptrend but it is important for Capitaland to rebound off from this support level of 3.91. What is lacking right now is appearance of bullish signals from the indicators or candlestick. If the bullish signal fails to appear, 3.81 support level is the last line of defence for Capitaland to retain it bullishness.

What to watch out for this week:
1) Formation of bullish candle or bullish signal at 3.91
2) Breaking of 3.81 support

Trading strategy to adapt right now:
- Long when bullish signal appears.
- Look at short direction if 3.81 support breaks with high volume.

*Disclaimer applies