AIMS AMP Capital Industrial REIT: At $1.02 resistance.

On 19 January, I mentioned that if sentiments remain bullish, we could possibly see resistance at $1.02 for the REIT's unit price tested. My overnight sell orders at $1.015 and $1.02 were filled today.

Could the REIT's unit price push higher? It could but anyone thinking of buying into the REIT now might want to bear in mind that the REIT goes XD on 3 February and we could possibly see the REIT's unit price weakening then. Risk premium for going long is much higher now.

Momentum oscillators like the RSI and the Stochastics show the REIT to be very overbought and for a rather prolonged period by now. Only the MFI is not overbought.

The MFI takes into consideration price and volume and shows demand compared to the RSI. However, the MFI being where it is now is also the result of relatively low trading volumes.

Volume is the fuel that drives rallies. So, without volume, we could see the rally fizzle out in time.

Related posts:
AIMS AMP Capital Industrial REIT: Partial divestment.
AIMS AMP Capital Industrial REIT: 3Q FY2012.

First REIT: Partial divestment at 76.5c.

First REIT never did test 80c after it went CD. The highest it touched was 78.5c. This morning, after it went XD, its unit price declined to a low of 76c.

I made a decision to divest units which I accumulated at 76.5c and 77c earlier last month in January. I managed to sell at 76.5c as 77c could once again assert itself as the immediate resistance.

Overall, I still make a gain as I would collect a DPU of 1.93c payable on 29 February on these divested units. Therefore, it has turned out rather decently as a trade.

When would I again add to my remaining long position in the REIT? I see stronger supports at 75c and 74.5c. Could we see them tested in the next two months? Your guess is as good as mine.

Related post:
First REIT: FY2011 results.