Golden Agriculture: Watch the 100dMA.

Golden Agriculture had another high volume white candle day but price could not close above the declining 100dMA and a long upper wick was formed in the process. This is the second time in the last few sessions which saw the 100dMA broken but, ultimately, remains the resistance to watch.

Could we see price moving higher in the next session, overcoming resistance provided by the declining 100dMA? We could. Could we see price being pushed lower in the next session and perhaps retest supports? We could.

Huh? What am I saying? The usual and that is TA is about probabilities and not certainties. At this moment, the odds are 50-50 that it could go either way.

What have I done? Seeing strong resistance at 71c, the last high, I did a partial divestment today at 70.5c. If price were to weaken from here to retest supports, I would buy more. If price were to move higher, I have more to sell.

If price were to move higher, we could see 72c and 73.5c tested as resistance. Ultimately, we could see gap cover at 76c. Sounds good? However, if price were to move lower, expect immediate support to be at 69c, followed by 67.5c.

No matter how bullish analysts are, I would be cautious here as a possible head and shoulders formation is obvious in the chart. Therefore, without a higher high (i.e. higher than 73.5c), we are still on thin ice.

Related posts:
NOL and Golden Agriculture.
Golden Agriculture: Divestment at 70.5c.

AIMS AMP Capital Industrial REITs: Buy ups!

It is widely acknowledged even amongst private investors that Singapore's industrial real estate provides probably the highest yields compared to all other classes of real estate. Personally, I know of some really rich people who own one or a few industrial properties in Singapore. As I am not in the same league, I seek exposure through investments in industrial properties S-REITs.

I would draw your attention to a couple of past blog posts and if you have missed reading these, you might want to check them out:
1. Higher rents to benefit industrial properties S-REITs
(7 April 2011).
2. Industrial rent forecasts strongest for Singapore.
(17 April 2011).

Buying units of REITs which are trading below NAV is still something I do with the exception of Cache Logistics Trust which I bought at a smallish premium to NAV. I usually go for industrial properties S-REITs offering higher distribution yields, preferably closer to 10% per annum (adding to my investment in AIMS AMP Capital Industrial REIT when its price hit 19.5c and 20c in recent past and buying heavily into Sabana REIT in the last two weeks as its price hit a low of 90c).

Currently, I have investments in the following industrial properties S-REITs:

1. AIMS AMP Capital Industrial REIT
2. Sabana REIT
3. Cache Logistics Trust
4. Cambridge Industrial Trust

Of the four, I am only interested in adding to Sabana REIT for reasons I discussed in an earlier blog post. Please read it here. I also said that I am waiting for an opportunity to partially divest my stake in AIMS AMP Capital Industrial REIT and to move the funds into Sabana REIT. The opportunity should take the form of a rebound and when resistance is tested.

Remember I blogged about my disappointment in Cambridge Industrial Trust in an earlier blog post? It did not mean that I would dump my units at whatever price available at that point in time. I meant that I would divest at a price which is to my advantage. There is a time to buy and a time to sell. We can only hope that we get them right.

I was somewhat saddened when some readers told me that they sold away their units in the Trust after reading my blog post and the counter was still trading CD at the time. Read blog post here.

Now, with AIMS AMP Capital Industrial REIT, we are seeing consistent buying ups for two sessions now. Today, a dragonfly doji was formed with 4,851 lots bought up at 21.5c and only 43 lots sold down at 21c.

Could the reverse head and shoulders I blogged about on 18 May be valid? Read blog post here. If valid, it would provide a chance for me to partially divest my stake in the REIT.