Trop- feeling the heat!

I had a quick look at Trop price chart after a reader wrote to me. This stock seems to be moving in an irregular upward channel (denoted in blue as ABCD). Within the channel, it has support & resistance. It broke its horizontal support at RM1.50 and the 40-week SMA line. It is now resting on the 100-week SMA line at RM1.34. If this support is also violated, it may test the strong horizontal support at RM1.10. That plus the psychological level of RM1.00 should hold back the strong downtrend for this stock.


Chart: Trop's weekly chart as at Nov 20, 2013 (Source: quickcharts)

I am not sure what trigger the selldown on Trop. There were two stories that could have a negative impact on the stock. The first would be Danny Tan's reverse takeover of Albedo in SGX where his attention may be diverted away from Trop, which many regard as his main listed vehicle (here). The second reason could be the decision by CapitalMalls Malaysia Trust to abort the purchase of Tropicana City Mall & Tropicana City Office Tower for an undisclosed price tag (possibly RM550-650 million) [here].

Based on technical analysis, I think Trop would be a trading BUY if it ever comes down to RM1.00-1.10 level.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Trop.