Saizen REIT: Support provided by the 100wMA.

Anyone vested in this REIT would have noticed some strength in its unit price lately. There has been plenty of buy ups and yesterday saw 408 lots bought up at 17c in a single transaction. That all this is happening after the REIT went XD just a few weeks ago is rather impressive.

The OBV shows a picture of steady accumulation since hitting a low on 12 Nov 2010. The MACD has completed a bullish crossover with the signal line in negative territory while the MFI and RSI have risen to test their respective 50% lines.

While we cannot say for sure that Saizen REIT is going much higher from here, we can say that the downside seems pretty limited. On the daily chart, 15.5c is established as a strong support. A retest of 15c is possible but the probability of it happening is much lower. Looking at the weekly chart, we understand why this is so.

The 100wMA has completed its turn up and is currently providing support at 15.5c and should limit further downside. Strong resistance on the upside could be found at 17.5c while strong support is at 15.5c. The darkest days of this REIT are more or less over.

Related post:
Saizen REIT: Divestment of Kinyacho Grande.

CapitaMalls Asia: A basket case?

Someone in LP's cbox who was rather vocal in his support of CapitaMalls Asia, in recent days, has voiced his displeasure and how he is losing patience with the counter's lacklustre performance. So, is CapitaMalls Asia a basket case or is it not for people with little patience?

Fundamentally, it is a very strong company. Technically, it looks pretty interesting to me. Volume hit a high on 28 Feb as a black hammer was formed. A low of $1.69 was hit that day too, a cent lower than the support I identified before at $1.70 using two sets of Fibo lines.

Now, notice that volume has reduced visibly as the share price drifts on. A picture of reducing interest from market participants. As this happens, higher lows were formed on the MFI and the MACD. Positive divergences? Looks like it. If validated, a move to the upside would meet with immediate resistance at $1.80 which is where we find the downtrend resistance and the declining 20dMA.

Related post:
CapitaMalls Asia: Up or down?