First REIT: A bullish harami.

Volume expanded again today with a total of 12.21m units changing hands. This time, a white candle was formed. With price opening at 67c and closing at 67.5c, this is a wickless white candle. Also, this formed right in the mid-section of the previous session's black candle.

Remember, I mentioned yesterday that "the black candlestick formed this session is not as bearish as the three black candlesticks before it. It actually started in the middle of the previous session's candlestick and it also formed a lower wick unlike the previous three candlesticks. Support is at hand." What we see today is a textbook example of a bullish harami, a bullish reversal candlestick setup. As with all technical analysis, this will need confirmation in the next session.

It is my personal belief that the 200dMA support at 67c has been recaptured.  Further upward movement in price would find immediate resistance at 68.5c.  This will be followed by 70c and 71c. In due course, if these resistance levels were cleared, the counter could cover the gap at 73.5c. There are some who are still waiting to see how low the price could fall before buying in. Their hands could be forced in the next two days if price continues to be resilient and this would contribute to a further strengthening in price.

I count it fortunate that I managed to collect some rights at 16c yesterday (effective cost = 66c). I queued for more mother shares at 64.5c last night in case price weakened further today. 64.5c now seems rather remote as a possibility. With the OBV turning up sharply, the suggestion is that accumulation is back in force. Let us see if the long term support at 67c holds up from now.

Related post:
First REIT: Good bad news.

Sabana REIT: Possibly bottomed.

92.5c touched on 10 Dec could possibly be the bottom which worried unitholders are looking for. As with all bottoms, it is only apparent after some time. In fact, calling it a bottom now could be a tad early.

However, the white spinning top, a possible reversal signal, formed today on low volume is encouraging. Volume was the lowest since the REIT started trading in late November. OBV also seems to be rising since 7 Dec, suggesting continual if mild accumulation since. Selling pressure has weakened and if 92.5c was ever tested again, it would be a stronger support as market participants would remember it as the price they missed out on to go long. The worst could be over.

Related post:
Sabana REIT: Touched 92.5c.