K-REIT: Moving into the next band?

On 14 Sep, I suggested that "K-REIT seems to be trading in a 6c trading range recently: $1.16 to $1.22 and $1.22 to $1.28".  I also said "in the event that $1.28 resistance is taken out, one could therefore expect $1.34 to be the next resistance level."

Today, K-REIT traded at and above $1.28 the whole session.  It touched a high of $1.30 before closing where it started the session at $1.28, forming a gravestone doji.  The sell queue at $1.30 is formidable. Could $1.28 be the new support?  Frankly, a gravestone doji does not inspire much confidence.  Furthermore, the attempt to move higher in price was on the back of relatively low volume.  In fact, we could see a negative divergence between price and volume clearly.  Price is rising on lowering volume.  Not too promising.

However, OBV shows accumulation mode in full swing.  MFI is rising gently and not overbought.  RSI is however in overbought territory and suggests that buying could be overdone. Very interestingly, the MACD histogram has turned green, a buy signal but notice that the distance between the MACD and the signal line has been narrowing.  So? Caution.  It would not be a good idea to buy into K-REIT now.

Of course, things could look much rosier if we have an expansion of volume the next day while price moves higher. TA is only about probability after all.  Whether $1.28 is now support needs confirmation.  That there is a strong support at $1.22 has been established earlier.

Related post:
K-REIT: Trading bands.

Courage Marine: White candle day.

On 15 Sep, I asked, "Is Courage Marine awakening? If the resistance at 19.5c is taken out convincingly, it could very much be the case." Today, this took place on rather high volume. Of the 3,882 lots traded today, 2,999 lots were buy ups, of which 2,172 lots were buy ups at 20c.  Could the remaining sell queue at 20c be mopped up tomorrow? Perhaps.

The MACD is rising in positive territory signalling a return of positive momentum. The OBV shows a sharp move upwards suggesting increased accumulation. The MFI formed a higher low several sessions ago and has risen into overbought territory.  The RSI has the same trend.  Demand and buying momentum are both positive but seeing the indices being in overbought territories sends a cautionary note.  Any upside could be limited.  If 20c is take out, the next resistance could be at 21c, the high of 22 Jun 10.

However, in exceptionally bullish situations, both MFI and RSI could stay overbought for much longer. Could it happen in the meantime? It could but it does not seem very probable.

Related post:
Courage Marine: Awakening.