First REIT: Accumulate on weakness.

On 21 March, I mentioned that "Technically, the REIT is still in a downtrend which started on 20 Jan 2011. The trend resistance is at 74c. If price is able to break 74c convincingly, by this I mean with higher volume, we could see old highs tested as the downtrend breaks." In the last session, the REIT touched 74c although it closed at 73.5c which is still within the downtrend. Volume was relatively thin.

Checking the ADX, we see the -DI declining while the +DI has turned up. In fact, the +DI is close to crossing the -DI on the upside. The ADX keeps declining which suggests that the downtrend, although intact, is weakening. So, waiting to accumulate at the 200dMA could be wishful thinking in the near future.

In a change of plan, I would increase exposure to this REIT on any weakness and this would be at 73c (100dMA), 72c (lower Bollinger) and 71.5c (the recent low of 17 Mar).

Related post:
First REIT: Rising on low volume.