Sabana REIT: Being stubborn?

I have been waiting for a chance to initiate a position in Sabana REIT at 92.5c, its historical low. I have been described by some as stubborn for not giving in and buying at 1 bid higher. Well, it was this same stubborn behaviour that got me into Cache Logistics Trust at 91.5c instead of 94.5c recently. I am investing for income and yield is a major consideration and, therefore, the entry price is a major consideration.

Of course, I am not blind to the power of market sentiments and that is where TA comes in. If you remember, I changed tact on First REIT and revised my buying price higher because of technical signals which suggested strength recently. I also bought more units in Cache Logistics Trust at 92.5c. Nothing is set in stone.

With Sabana REIT, the technicals are still weak and there is a chance of its unit price going lower. So, I will continue to wait at 92.5c. OK, as a hedge, I would put in a buy queue at 93c too. To those who have said I am stubborn, well, this shows that you are wrong and this makes me happy.

Easily contented, I am, and to bed with a smile, I will.

Related post:
Sabana REIT: 92.5c is near.

CapitaMalls Asia: Partial divestment at $1.78.

In my last blog post on CapitaMalls Asia, I suggested that I could divest at $1.78 and I did so today. Using a Fibo fan, it is interesting to see how opening at $1.78 today is exactly where we find resistance provided by the 61.8% fanline. 61.8%, being one of the three golden ratios, is likely to be a strong resistance and so it was today.

If price action should break the resistance provided by the 61.8% fanline in the next couple of sessions, we could see the 100dMA tested as resistance ultimately. This is currently at $1.89. Sounds exciting? Of course it does but there is $1.83 to contend with first as that is likely to be a very strong resistance too. Sounds tougher now, doesn't it? This is especially so when we realise that volume has been reducing in the last few sessions (see orange line).

One wonders if the trendline support that started on 15 March could hold or would it break. If price should pull back in the next session, support is at $1.73. If the hypothesis that we could be entering a rangebound, sideways trading turns out to be correct, we should take heed of the Stochastics which shows a bearish crossover to be completed in overbought territory. This hypothesis finds support in the ADX as well which, at the moment, suggests that there is no strong trend in this counter's price action.

Having made a partial divestment at $1.78 today, I would still benefit from a continuing upward movement in price if it should take place. If price should weaken instead, I would be able to load up with less reservation.

Related post:
CapitaMalls Asia: Testing resistance.