First REIT: Breaking resistance.

To any chartist, it is clear that First REIT broke an important resistance at 74.5c in the last session. Volume expanded significantly on a day when a wickless white candle was formed.

With the MACD rising into positive territory and with the RSI rising from the borders of its oversold territory, we could be seeing the beginnings of an earnest attempt to move higher in price. We could see stronger resistance starting from 76c with 77c being a significant many times tested resistance which also approximates the 150% and 161.8% Fibo lines at 76.8c and 77.2c respectively.

Looking at the weekly chart, we see the rising 100wMA approximating the upper Bollinger band at 78c. Possible target? Why not? Declining 50wMA is at 82c. Possible target? Again, why not? However, this is the weekly chart. So, it gives us insights into the longer term picture. If price were to climb higher, it is going to do so on a wall of worries.

Related post:
First REIT: 1Q 2011 results.

Cache Logistics Trust: Weekly chart.

For quite a while now, I have been investing for income. However, friends and readers of my blogs in the early days would know that I am not averse to investing for capital gains as well. Logically, who would be averse to investing for capital gains?

For a longer term picture, I like to look at weekly charts. Looking at the weekly chart of Cache Logistics Trust, it is obvious that it has been in a downtrend for months, well, since mid September 2010. I feel that a rebound is probably on the cards, if not a reversal. Why? The MACD has formed a double bottom and the distance with the declining signal line has narrowed. We could see a bullish crossover in time although it would almost certainly happen in negative territory.

Next, look at the OBV. Since forming a low in the week of 21 February, it has not formed a lower low and this is although price went on to touch new lows. This suggests that smart money is accumulating units in this REIT as price weakened in the longer term.

In terms of candlesticks, a white hammer was formed last week. This is following the preceding week's big black candle. This is a bullish signal which, of course, needs confirmation. If confirmed, immediate resistance are at 95.5c (20wMA) and 96.5c (50wMA). Overcoming these resistance levels would give a target of 98.5c which is resistance currently provided by the trendline resistance which approximates the upper Bollinger band.

With the next income distribution due to be announced on 26 April, chances of an upward movement in unit price is rather good. I have been accumulating and wish fellow unitholders the best of luck.

Related post:
Cache Logistics Trust: Testing supports.