First REIT: Testing immediate support.

On 4 February, I suggested that "Caution is advised. There could possibly be a better time to buy more."

I also said that "On the daily chart, right away, we see that the Bollinger Bands are squeezing. An imminent change in direction after a period of low volatility? Which way would it go? The MACD has been falling as a bearish crossover was completed sessions ago. Momentum is weakening. Immediate support is at 75c."

Today, First REIT's unit price declined to test immediate support at 75c. Volume increased perceptibly as price managed to close unchanged at 75.5c. The technicals are bearish and we see that the MFI's downtrend is very much intact, suggesting a declining momentum in demand.

If the immediate support at 75c should give way, we should see some support at 73c next. This is where the rising 50dMA is approximating now. How likely is it that 73c would be tested? Well, if we believe in symmetry, 77c was the adjusted high and with 75c as the neckline, this would give us 73c as the downside target. Seeing the price hugging the lower Bollinger band now, why would this be unlikely? I crave your indulgence as I enjoy my little games.

Related post:
First REIT: Buying more?

CapitaMalls Asia: Low volume pull back.

Unfortunately, the bulls have turned cautious and the bears bolder. The black candle formed today is long and most ugly. The MACD histogram has turned red which is a sell signal. Time to panic? Well, maybe later but definitely not now.

Notice how much lower the volume is on a day when price declined so much. What does this tell us? There is a lack of buyers. The downward movement in price is due to a lack of buying and not because of massive selling. So? Weak holders are being shaken out. Let's see if the golden cross formed by the 20d and 50dMA would provide a strong support in limiting further downside. This is at $1.92.

Having offloaded most of my long position at $2.00, I might pick up some at supports.

Related post:
CapitaMalls Asia: Pushing it higher.