Cache Logistics Trust: Positive divergences.

I initiated a long position recently in this Trust on 15 March at 91.5c. That decision was made mostly on fundamentals. The technical consideration was that 91.5c was the lowest it ever hit since its IPO but it went on to touch 91c on the same day. I was even musing as to whether it would hit 88c next which, incidentally, is its NAV/unit.

Today, I decided to rely on the many positive divergences in the daily chart of CLT and I added to my long position with additional purchases at 92.5c. The counter closed at 94c today, forming a long wickless white candle in the process. Volume was higher than the session before too.

However, closing at 94c means that the downtrend is still intact. If there should be a follow through next week, we would see the downtrend broken and price could rise to test resistance at 96c as provided by the merged 100d and 50d MAs or even 97c which is where we find the 200dMA.

Related post:
Cache Logistics Trust: Initiated long position at 91.5c

AIMS AMP Capital Industrial REIT: More upside?

I bought more of this REIT at 20c two days ago and I bought more again yesterday at 19.5c. My overnight buy queue at 19c was not filled today although some 6 transactions, totaling merely 68 lots, sold down the REIT at 19c today. At 19c /unit, the distribution yield would be 10.53%.

Do I think the price is going higher or lower?

Fundamentally, there is nothing wrong with the REIT. Financially, it is very much stronger than its MI-REIT days. It has also reported on the status of its Japanese property in Tokyo and the situation is benign. Read blog post here. With an expected DPU of 2c per annum, the REIT looks very attractive at 20c per unit, the price it closed at today. In fact, on closing, 4,543 lots were bought up at 20c per unit.

Technically, the downtrend is quite obvious. However, forming a dragonfly doji is bullish. So is the higher low on the MACD histograms. Looking at the OBV, I see something interesting and that is how the OBV formed a higher low in the recent sell down compared to the low formed in late February when price was somewhat higher. This means that there is ongoing accumulation as price weakened recently.

I see immediate resistance at 20.5c which is where we find the steepest trendline resistance. A fair upside target in the event of a follow through is 21.5c which is where we find the next trendline resistance and the declining 100dMA.

Related post:
AIMS AMP Capital Industrial REIT: Bought more at 19.5c.