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Unlike China Hongxing I blogged about just now, AIMS AMP Capital Industrial REIT is something I am heavily vested in. The investment decision was made based on the REIT's sound fundamentals and relatively high yield. I also like what the technicals are telling me now.
Today, I received an email from a reader asking if the high volume is a sign of some big boys slugging it out. I don't know, of course. However, if we check the trade summary, there are about 4.1m units bought up and 4.1m units sold down throughout the day. Of course, almost 5m units changed hands before the market opened at 8.35am. Price? All at 22c. I shan't bother trying to guess what is happening behind the scenes as that would probably just give me a headache and more white hair. Totally unproductive.
However, technically, the charts show that the trendline resistance, which is at 22.5c, remains unbroken. Support remains at 22c. That the support is still holding up despite a much higher volume on a black candle day, with obvious ongoing distribution which is easily seen in a plunging OBV, is very encouraging. Support is strong.
The MFI plunged but is still above its trendline support. The MACD, which broke out of its downtrend some sessions back, is still in positive territory and above the signal line. We want to see the MFI bouncing off its support and the MACD turning up once more. If these happen, resistance at 22.5c would, more likely than not, break in time and we could see the high of 23.5c tested eventually.
Notice:
The unaudited financial results for third quarter ended 31 December 2010 will be released on 25 January 2011, after market close.
Related post:
AIMS AMP Capital Industrial REIT: Firm support.
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