Capitaland a property stock has been testing the short term downtrend that we drew a few times and can’t seem to break out from it yet.
If it fails to break we might see it head down towards 3.45 and if that horizontal support breaks then we might eventually see 3.39.
If it breaks above the downtrend line then Capitaland might face a few hurdle to cross . One of which is the 50 days moving average and the other uptrend line we drew. So a stop loss above 3.58 can be placed.
City Dev to us can be a tricky stock as there are times when it moves up and down with many fake breakout and breakdown.
We’re using the 200ma as a guide this time as we did for mapletree Log(http://singaporehumblestock.com/2016/11/mapletree-log-2/) by the way it came down more today =) just shy of 0.05 of our target of 97 cents.
For city dev, its been above the 200ma for the last 7 months. So this has to hold and if it doesn’t then long term players might even let go of their holdings which could accelerate the downwards movement . 200ma stands at $8.35 we’ll only initiate a short if it breaks down convincingly. Entry can be 8.34 with a stop loss of 8.41. We’re putting a tight stop loss for this. But if you have a bigger tolerant then your stop loss could be at 8.69
Capitaland might see further downside to 2.95 area before we see some rebound depending on the market
As you all know we like to KISS ( keep it short and simple) . Capitaland is currently sitting on its 200ma and also on its uptrend line. So if you’re betting on Fed to keep the rates unchanged then you might try to go long around the support at around 3.07-3.09 area with a stop loss of 3.05 ( keeping it tight)
Or if you think that there will be a hike which might hurt property developers then wait for it to break the 200ma and the uptrend line before initiating a short position. With entry at 3.06 and stop loss at 3.13
Do you see what i see?? Capitaland came down this week as blogged on Sunday night. In fact, property stocks came down this week, counters like city dev, UOL came down. This was sent to our clients with CFD on monday during trading hours =) followed by city dev the next day.
So where to now for capitaland? It has reached its 200ma a good area to take some profit at least. We feel that there might be more downside if it breaks the 200ma to $3 first. It might hover around the support and then break down after that. So we’ll be looking to short when it breaks the 200ma . Remember your stop loss too ya.
City dev did have a pull back ever since we mentioned it on 26 july it broke its horizontal support and 8.76 and closed at 8.51 a good 25 cents profit if you had shorted. Over here at the humble stock we advocate taking profit along the way and not try to aim for the highest and lowest and take profit. Taking profit along the way helps in your mental strength or phycology too. In case anything goes wrong at least u got some profit. So we would take some profit at this level as its at its horizontal support of 8.51 if that breaks hopefully we’ll see 8.35
Capitaland, also had some movement up to 3.21 since we blogged on 20 july tried to break out of its resistancce of 3.20 but failed and closed below its resistance. We’re now watching to see if the 3.16 support holds if not it might come down to the 200ma. Or will it attempt to break if resistance again.
AusGroup operates in the LNG, oil & gas, minerals & metals, petrochemical and process sectors. We have established relationships with our clients in these sectors to build, maintain and upgrade some of the region’s most challenging development projects. ( Taken from their website) is related to the oil&gas sector which is currently weak now. It broke its support of 0.056 and closed at 0.055 today. With that we might see it test the next support at 0.047 if oil continues to be weak. Short entry could be at current price at 0.055 with stop loss at 0.06. This is a micro penny stock which will raise a few concern for us if we’re shorting it.
It may be suspended. In event it does you might lose your full amount that you are shorting
Micro pennies can have very erratic movement too. Its depth might be thin so if you’re shorting in big quantity you might have problem covering.
In conclusion, we wouldn’t short very huge for this and would go small only just to ride it down and would be willing to lose full capital if this stock were to suspend.
On the other hand, looking at the blue chips (more stable) capitaland which we pointed out last week had a nice move towards our resistance level of 3.19 and closed at 3.18. Congrats to those who made in this. Most property stock today had some run up which would be a little strange given current market condition. We would continue to be bullish as long as capitaland stays above the 200ma or if it can stay above the resistance of 3.19 which might take it to 3.25 first.
Have a great week ahead. 4 more days to the weekend =)
Capitaland is above its 200ma and now above its downtrend line too . With that we might see more upside in the coming days and if sti were to break above 2964 good chance capitaland could go to 3.19 first. Our stop loss can be one pip below the 200ma or 3.03
CAO (China aviation which we post earlier went to a low of 1.39 yesterday but it rebounded strongly today with an increase in volume. One should be careful if you got a short position either reduce position or wait till it hits stop loss at 1.52 and may even consider to go long then. =)
Capitaland is currently sitting very near it uptrend support line of about 2.93. The short term uptrend line is currently supporting it and its testing that line for about the third time. If that line breaks, we might see further downside to even 2.50 in the coming months. Our stop loss if we were to short below 2.93 would be 3.06 above the 200ma quite good risk reward ratio we feel.
We are to also look at the STI and how it performs. If the STI continues to be weak, we might see capitaland go down together with it. Stay tune. Will update on the STI .
Capitaland been showing some resilience the last few days despite the market sell off managing to stay above that green uptrend line that we drew but just for today it seems that capitaland has closed lower than the trendline. Good to take note of it and if it breaks the 3.05 horizontal support we might see it head lower to the next horizontal support line at around 2.92 area first. A Stop loss 3.13 in the position turn against you.Will update more when the time comes