The share price of Capitaland has been dropping steadily since its failure to close above $3.00 on 16 April 09. It has fallen through a rising window's support at $2.66 and is now poised just above another rising window, with support at $2.53. The candlestick formation today looks like the start of the formation of a morning star. For this three-candle formation to be confirmed to be a morning star, the candle on the next day must be a white candle closing above $2.66. The situation based on Western technicals does not look so promising. The MACD lines have crossed downwards. The share price has also fallen below the simple moving average line. These two indications mean that the short term trend of Capitaland is down.
Above is a weekly chart of Capitaland. The medium term chart of Capitaland is still up but its upward momentum is slowing. The only plus point I can see here is that the fall in share price is accompanied by a fall in volume, so it may be that people are simply taking profit. I would suggest waiting for the short term down trend to reverse before taking a long position (buying) Capitaland.
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