Who Moved My Singapore Cheese

Exchange: SGX
Counter: Capitaland
Current Bid Ask: 3.78 / 3.79

The recent stock market recovery has most counters moving in an upward channel as shown in the daily chart above for Capitaland, one of the more liquid and volatile member of the Straits Times Index...I have been eyeing this counter for a while and this entry will mark the first of a (hopefully useful) technical analysis series...

One important note: for most of us retail players, we do not have the facility to go into naked short selling, forcing us to cover our shorts within the day, which is no good for strategies of any kind (unless you are into CFDs - but I do not have direct experience with it at the moment to validate some of the criticisms I have heard about them). Hence, we will be only looking to maximize our probability of a profitable buy-in opportunity and look out for exits or selling signals.

Since March the upward trend has been established. Preceding the 2 upward swings as indicated by the blue upwards arrows, we have had rising volume on declining prices, RSI heading north, MACD undercutting the signal.

Today, we are at the exact opposite of that, the MACD is looking to cross the signal from above, the RSI is heading south from the 70% mark, which are exact replicas of the last 2 down swings. The steady volume suggests that this retracement has legs.
As such, I will wait for the signs to turn before looking to buy into the next swing.