First REIT: Rising on low volume.

In my last blog post on the REIT, I suggested that the downside proposition looked more persuasive but I was also beginning to see positive divergences. Today, the MACD turned up and formed a higher low.

Price moved higher and closed at 73.5c. I think the positive divergence has been validated. However, rising on rather low volume is lacking in persuasive power.

Technically, the REIT is still in a downtrend which started on 20 Jan 2011. The trend resistance is at 74c. If price is able to break 74c convincingly, by this I mean with higher volume, we could see old highs tested as the downtrend breaks.

Unable to break the trend resistance at 74c could see the REIT trading lower and I would not be surprised then if the rising 200dMA should be tested for support. This is still at 70c.

Related post:
First REIT: Buying more?

Cache Logistics Trust and CapitaMalls Asia.

Cache Logistics Trust: On a day with lower volume, price could not break out of the downtrend. Instead, a doji, suggesting indecision, was formed.

Could we see price overcoming resistance and test the merged 50d and 100d MAs at 96c? Although the positive divergences are plain to see, we need volume to expand on any move upwards in order to overcome the trend resistance. Immediate support is at 92.5c in case of a pull back.

JP Morgan reduced its holdings on 15 March from 6.97 % To 5.83 % (44,210,000 units to 37,032,000 units).  That's a reduction of 7,178 lots. That was the day the trust touched 91c.

CapitaMalls Asia: No breakout today which obviously means that the downtrend is intact. Immediate support is at $1.66. If that were to break, keep an eye on $1.57. If it were to be retested intact on lower volume, it would be bullish.

A breakout would see immediate resistance at $1.75, $1.78 and, ultimately, $1.83.

Related posts:
Cache Logistics Trust: Positive divergences.
CapitaMalls Asia: At resistance.