SPH: A bullish reversal signal.

Just like LMIR, SPH spots a bullish reversal signal.  In this case, it is a doji. Technically, it is less bullish than a white hammer but it might work.

The declining 20dMA will very likely form a dead cross with the 50dMA soon.  The 50dMA should cap any rebound in price at $3.91.  A lower high was formed earlier this month at $3.95 and this would be the next resistance level in case the 50dMA resistance is taken out.

MFI has been forming lower highs and dipped into oversold territory recently.  OBV has been in decline. The MACD is still declining in negative territory.  The bearish picture is obvious. There would probably be a lower entry price to go long on this counter. I would wait and see.

Related post:
SPH: Another black candle day.

LMIR: A rebound might be next.

LMIR is one of my favourite REITs. It has high yield, low gearing and a big discount to NAV.  However, its price has been in an obvious downtrend. The downtrend recently worsened.

FA is about value and TA is about price. Price wise, this counter might see more downside. Being pragmatic, I would add to my position when the next base is formed or when price rebounds and forms a higher low.

Looking at the daily chart, we see that on Friday, a white hammer was formed.  This is a nice bullish reversal signal. Drawing downtrend lines, we see that the steeper downtrend line coincides more or less with the declining 20dMA which formed a dead cross with the 200dMA in the last session.  This would be at 48c in the next session.  A rebound would probably find initial resistance at 48c.

I would wait to see if a lower high is formed before deciding whether to add to my position.  The MACD is still pulling away downwards from the signal line and the OBV is in decline.  MFI is in the oversold region and this also supports the idea of a near term rebound but it has been forming lower highs.  So, if another lower high is formed during the rebound, the bearish picture is reinforced.

Related post:
LMIR: 1Q 2010 results.