It doesn't come everyday that prices are so telling that it wants to tell us a story behind the stock. I have pulled out an example of a recent spike in price of CapitaMallsAsia. If we trace it back to 7 Feb, we notice that the stock first staged a breakout above a major resistance level. Bullish. Then on 8 Feb, a huge white candlestick appeared together with a newer high in day volume. Bullish. The candlestick on 8 Feb was duly supported by news from Kim Eng that states CapitaMalls Asia as buy with a target price of $1.92. Then guess what? On 10 Feb after market close, CapitaMalls Asia announced a 8.1% increase in FY 2011 PATMI.

Screenshot obtained from Capitamalls Asia website.

Prices ARE telling. If you believe in what prices are trying to say, you can make money. Of course, we do not need ......