First REIT: Bought more at 73.5c.

Today, I bought more units of First REIT at 73.5c. It should be quite obvious that the unit price of this REIT has gone into a trading range. There is no trend.

In my blog post of 1 April, I said "The REIT's price action looks rangebound and if we believe that there is no trend, we should pay attention to the Stochastics which suggests that the REIT is correcting from an almost overbought position. So, more weakness to be expected? Possibly and I am waiting to accumulate on any further weakness."

The Stochastics were coming off a high of 80% in late March. It has now flatlined at 50% which sometimes act as a support in a decline. With Stochastics no longer bordering on overbought, could we see price pushing the higher end of the range in the near future?

The rising 100dMA seems to be providing some measure of support and this is now at 73c. 74.5c is a many times tested resistance and would have to be cleared before price could go higher.

With the quarterly report and income distribution announcement drawing nearer day by day, a positive catalyst for price to move higher in the near term is possibly at hand. Could we then see a retest of January's high of 77c? Why not?

Related post:
First REIT: Bought more at 73c.

Capitaland: Insights with Fibo Fan.

In my last blog post on Capitaland, I said that "With immediate resistance at $3.54 (100dMA) and a possible whipsaw to $3.56 (gap resistance and 50% Fibo fan line), the near term upside could be limited from the current level. Support is at $3.41 in the next couple of sessions. This is a natural candlestick support and it coincides with the trendline support. A retest of support could see me initiating a long position in this counter." Read it here.

Today, Capitaland's share price pulled back and closed at $3.44, the low of the day, after touching a high of $3.53, just approximating the 100dMA. A test of support at $3.41 is very likely. The original plan was to initiate a long position at $3.41, if tested. Seeing, however, that the momentum oscillators are still bordering on overbought despite the pull back in share price, I decided to get some insights with a Fibo Fan.

The Fibo Fan connects the low of 17 March and the high of today. Now, what I am interested in are the positions of the golden ratios in the next few sessions. 38.2% would be at $3.38 and 50% would be at $3.32 in the next session. Notice how the 20dMA seems to coincide with the 50% line? This is likely to be a strong support, if tested. In between these two golden ratios, we find the 50dMA, still declining but gently so, at $3.36. This could provide some support as well.

So? Much safer entry point is at $3.32 while entry at $3.38 could be considered as a hedge. What about $3.41? Yes, that too could be considered a hedge although I am inclined not to put in a buy queue at $3.41 anymore because the momentum oscillators are still bordering on overbought.