First REIT: Simply amazing.

If it simply amazing how this REIT's price is pushing higher by the day. How much higher could it go? Why did it touch a high of 77c on 2 occasions and did not go higher?

Well, if we draw a set of Fibo lines, it becomes clear why 77c is resistance. It is where we find the 123.6% Fibo line. However, 23.6% is not a golden ratio and we could expect stronger resistance to be found at 78.5c which is where we would find the 138.2% Fibo line.

Of course, with both the RSI and MFI in overbought territories, we would not be wrong to question if the upward movement could continue. Although the OBV shows no sign of accumulation ending, we could see a pull back to correct the overbought condition. In such an instance, I expect 75c to be resistance turned immediate support.

I still have a fair value of 80c for this REIT based on FA.

Unaudited financial results of First REIT for the fourth quarter and full year ended 31 December 2010 will be announced on Friday, 21 January 2011.
Related post:
First REIT: Retesting high at 75c.

CapitaMalls Asia: Plagued by downtrend.

It is quite obvious that CapitaMalls Asia is still in a downtrend. Macquarie just upgraded it to Outperform from Neutral and raised its target price to $2.24 from $2.19. Will this give this counter the much needed push to break out of its downtrend?

Technically, the counter's price formed a higher low on 4 Jan. This is somewhat encouraging as it has not done so since starting its current decline on 6 Oct 10. Since forming a white candle on 5 Jan, its price has been hovering at $1.88, resisted by the 20dMA.

MFI is now at 50% which could act as a support. RSI is now at its trendline support. Will the supports hold? The MACD, although above the signal line, is still in negative territory. This counter is currently at a crossroad.

Closing above $1.90 would signal a breakout from the downtrend while breaking below $1.88 would signal the collapse of immediate support and price could retest the $1.83 lows. Good luck to fellow shareholders.

Macquarie upgrades CapitaMalls Asia to Outperform. The house reckons “the current weakness is a buying opportunity in a retail powerhouse in Asia.” Notes, CMA invested or committed more than $1.65 billion in four projects in 2H10, ahead of its internal targets; mall developer and owner offers exposure to more than 90 retail malls across five countries in Asia. 
Wednesday, 12 January 2011

© 2011 - The Edge Singapore

Related post:
CapitaMalls Asia: Eyeing $1.83.