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On 4 February, I suggested that "Caution is advised. There could possibly be a better time to buy more."
I also said that "On the daily chart, right away, we see that the Bollinger Bands are squeezing. An imminent change in direction after a period of low volatility? Which way would it go? The MACD has been falling as a bearish crossover was completed sessions ago. Momentum is weakening. Immediate support is at 75c."
Today, First REIT's unit price declined to test immediate support at 75c. Volume increased perceptibly as price managed to close unchanged at 75.5c. The technicals are bearish and we see that the MFI's downtrend is very much intact, suggesting a declining momentum in demand.
Related post:
First REIT: Buying more?
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4 comments:
will drop ......... wait next dividend rise again
chan
Hi chan,
Thanks for sharing your assessment. :)
Hi AK
First reit is also my my first buy into investment world...
Kind of attracted to the dividend of 8% hope with the new opening in mid year will boost the pricing higher with some capital gain :)
Spencer Chua
Hi Spencer,
I still have a fair value estimate of 80c/unit for First REIT. However, that's really based on some FA.
First REIT: XR and fair value.
Technically, the weakness could continue but downside should be quite limited.
A DPU of 6.4c for 2011 is more or less firm. So, I am not worried. Congratulations on your maiden purchase and I hope to hear from you again. :)
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