Saizen REIT: Accumulation mode

Like the broader market, Saizen REIT retreated today. Opening at 17c, it reached a low of 16c before closing at 16.5c. This is also on the back of higher volume. MFI and OBV are in decline, suggesting a lack of buying momentum.

Taking a look at the weekly chart, we see that the 20wMA is flat, coinciding with the 38.2% Fibo line at 15c. Expect 15c to be a strong suppot. With today's heavy volume selldown and the negative divergence between price and volume seen on the weekly chart, further decline in price to possibly test 15c cannot be ruled out.

I put in a queue last night to buy at the 16c support level. That was filled. I will put in a buy queue tonight at the next support level.

Golden Agriculture: White hammer!

Golden Agriculture gapped down and sank rapidly, hitting a low of 52c on heavy volume. Impressively, it closed at 54.5c, forming a white hammer in the process! A white hammer appearing after a series of down days is usually promising. We might have a reversal next week. We will need confirmation in the next session.

MFI, a momentum oscillator, is declining and almost at the 50% mark. OBV is still in decline which suggests distribution is still very much alive. Despite a lack of buying momentum and accumulation, price action managed to form a white hammer. This suggests some strong underlying support for the counter: the selldown was well absorbed.

As is my style to buy at supports when prices are moving down in an uptrend, I put in a buy queue at 54c, which I identified as a gap support, last night. Of course, it was filled. My other queue at 51.5c was not filled. Missed by 0.5c. Sometimes, hedging by queueing at one bid above support could be rewarding.