Jun 16, 2010

Time to sell CapitaLand & Short KepLand?

I mentioned in an earlier post that KepLand could be primed for shorting. Here's why:
  1. Potential double top albeit formed all within a month which might not hold.
  2. Hanging man candlestick which requires confirmation
  3. MACD has begun to show negative divergence
  4. RSI & Stochastics indicate overbought
  5. Volume is pathethic, which signifies the rally is artificially manipulated by the big boys
  6. MFI shows that money has begun to flow out of this counter.
(1) to (6) are bearish signs and require confirmation.

CapitaLand's closing today resulted in a doji or a half baked gravestone doji - which means this might be the peak.

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