First REIT: Could retest 84c high.

Just like Cache Logistics Trust, First REIT saw its unit price moving higher on the back of higher volume in the last session.

Unlike my position in Cache Logistics Trust, however, my long position in First REIT is much larger and I stand ready to sell into strength if the opportunity presents itself.

It seems to me that First REIT's unit price broke out of an ascending triangle pattern. If this pattern is a valid one, we could see the high achieved in late July earlier this year tested. This is at 84c. Before that, I expect gap filling at 81c which could offer some resistance.

In an earlier blog post, I also said the fair value of the REIT is at 80c. So, if you have guessed that I have put in sell orders at 81c and 84c, you are right.

Related post:
First REIT: XR and fair value.

Cache Logistics Trust: Further divestment at $1.

On 29 August, I mentioned that the mini double bottom, if valid, could see price go higher with a target of $1. On that same day, I partially divested my investment in the REIT as gap was filled at 96c.

On 8 September, I divested further at 98c which I thought was a rather stubborn resistance. The stochastics also showed the REIT to be very much overbought.

However, as is my usual style, recognising that TA is all about probability and never certainty, I did not divest fully. Today, my overnight sell order at $1 for Cache Logistics Trust was filled late in the afternoon.

With today's further divestment, my investment in Cache Logistics Trust is reduced to a rather small position, similar in size to my remaining investment in Suntec REIT. I would probably not do a full divestment unless Mr. Market should go crazy and give me a much higher price from here.

Technically, closing at $1.01 on the back of relatively high volume is good news for long holders and we could see the historic high of $1.02 tested next.

With Stochastics still high in the overbought region, we could see the REIT's unit price pulling back to supports. Of course, in extremely bullish circumstances, overbought conditions could persist for quite a while.

Related posts:
Cache Logistics Trust: Gap closed at 96c.
Cache Logistics Trust: Partial divestment at 98c.