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Well, the initial resistance of 17c was not overcome. In the last session, Saizen REIT closed at 16.5c after touching a low of 16c, forming a dragonfly doji. OBV is flat which suggests a lack of significant distribution or accumulation. The MFI has dipped into oversold territory. MACD's sell signal has not been reversed. Lethargy is a signature of Saizen REIT's price action.
I have drawn a trendline resistance connecting recent highs and a trendline support connecting recent lows. What looks like a symmetrical triangle took shape with its apex sometime in April. Symmetrical triangles are not the most reliable patterns in charting but, if valid, a price action in the prevailing trend is not far off. In this case, the trend is UP. The ascending MAs make this quite obvious.
My decision to accumulate Saizen REIT from 13c to the current price is informed by a thorough FA with the understanding that it is terribly undervalued. Even if the REIT's portfolio of YK Shintoku were to be foreclosed and even after all the warrants are converted into regular units, Saizen REIT would still have a NAV of 29c per unit. At 16.5c, it is still a good 43% discount to NAV. I have blogged about this quite extensively and shan't dwell on the fundamentals too much in this post but I will say this again, "Think contrarian!"
A video interview with Marc Faber (Posted Mar 12, 2010 07:30am EST by Peter Gorenstein):
"If you are going to put money to work in stocks both market watchers think Japan is the place to be. After a 20 year bear market and despite high-debt-to-GDP levels, the pair think the market has become too cheap to ignore. Always a contrarian, Faber believes the lack of interest in Japanese stocks makes it one of the most compelling buys in the world. "
Related posts:
Saizen REIT: Obvious uptrend.
Passive income with high-yields: Saizen REIT.
Japan's debt issue and Saizen REIT.
Bloggy Award