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Saizen REIT: Support provided by the 100wMA.

Thursday, March 10, 2011

Anyone vested in this REIT would have noticed some strength in its unit price lately. There has been plenty of buy ups and yesterday saw 408 lots bought up at 17c in a single transaction. That all this is happening after the REIT went XD just a few weeks ago is rather impressive.


The OBV shows a picture of steady accumulation since hitting a low on 12 Nov 2010. The MACD has completed a bullish crossover with the signal line in negative territory while the MFI and RSI have risen to test their respective 50% lines.

While we cannot say for sure that Saizen REIT is going much higher from here, we can say that the downside seems pretty limited. On the daily chart, 15.5c is established as a strong support. A retest of 15c is possible but the probability of it happening is much lower. Looking at the weekly chart, we understand why this is so.


The 100wMA has completed its turn up and is currently providing support at 15.5c and should limit further downside. Strong resistance on the upside could be found at 17.5c while strong support is at 15.5c. The darkest days of this REIT are more or less over.

Related post:
Saizen REIT: Divestment of Kinyacho Grande.

6 comments:

Anonymous said...

AK71, with the Japan earthquake today.. What do you think is the impact to Saizen. Given that they do have quite a few properties in Sendai and other cities..

Kevin

Joe said...

There has been abit of a selldown today after news about the earthquake in Tokyo. What are your thoughts about this?

Correct me if I am wrong but I believe Saizen REIT's portfolio does not include properties in Tokyo?

Janitor Lover said...

There has been abit of a selldown today due to earthquake in Tokyo. What are your thoughts about this?

Correct me if I am wrong but I believe Saizen REIT's portfolio does not include properties in Tokyo?

AK71 said...

Hi Kevin,

Saizen REIT has 146 buildings in Japan of which 28 properties are in the affected areas.

I would wait for a detailed report from the management on the extent of the damage suffered, if any.

AK71 said...

Hi Joe,

So many readers asked me about this. I am concerned too but I guess we would have to wait for a detailed report from the management. There is nothing else we can do.

For what it is worth, this was my reply to another reader on what I know now: "Saizen REIT has a total of 28 properties in the affected areas. This is 19.18% of all of Saizen REIT's properties. They contribute to about 15% of Saizen REIT's total income."

Don't lose sleep over this. I am sure any damage sustained would be covered by insurance. :)

AK71 said...

Hi Janitor Lover,

I guess your real name is Joe? ;)

I like your nickname. Quirky. :)

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