First REIT: Weakness on XD.

First REIT went XD today and its unit price gapped down, closing at 73.5c on the back of higher volume. Could its unit price continue to weaken? Acknowledging the lack of trend, let's look at the Stochastics and it is obviously falling from overbought territory. It could continue falling and we could see First REIT's unit price testing the support of its trading range at about 72c, given time. However, this might  not happen since price is currently at a confluence of MAs (i.e. 20d, 50d and 100d) which could act as support.

What would I do? Sell at resistance and buy at supports. If price should have a bounce up, selling at 74.5c or a bid lower at 74c could be a good idea. If price were to retest 72c support, buying more is what I would do. If you guess I am putting more faith in the possibility of the REIT's unit price weakening further in the short term, you are right. Just remember, however, that I could be wrong. ;-)

Cache Logistics Trust: 1Q FY2011 results.

Higher DPU than forecast: 1.952c.
XD: 3 May.
Payable: 30 May.

NAV/unit: 88c.
Gearing: 26.4%.
Interest cover ratio: 9.5x

See presentation slides here.

The numbers are nice and strong. Although its distribution yield is lower than AIMS AMP Capital Industrial REIT, I believe that it is a premium that is well worth the money.

Looking at the chart, a potential reverse head and shoulders is quite obvious. Of course, I could be counting the chicks before they hatch here. The neckline is at 96c and if the pattern is a valid one, we could see $1.00 tested again. Good luck to fellow unitholders.