Sabana REIT: Target BUY prices.

A reader mentioned that Sabana REIT's unit price has weakened to 88c after going XD. A further weakening in price could be an opportunity to accumulate. I have the same thought. After all, I divested a small portion of my investment in the REIT at 90c and 91c as its unit price rose in the last couple of weeks.

Question: What would be my target buy prices? Prices? Yes, I see stronger supports at 87c, 86c, 85c and 84.5c. So, I could possibly accumulate at these prices if they should be tested for support.

In a recent blog post, I said that Sabana REIT could possibly see a higher DPU in the next quarter. So, accumulating on weakness could be a very rewarding exercise. See blog post: here.

I would also pay attention to the momentum oscillators to see if the REIT is oversold at any point in time. Good luck to all of us.

Related post:
Sabana REIT: Partial divestment at 91c.

Capitaland: Pushing higher on lower volume.

Capitaland's share price touched a high of $2.66 and closed at $2.65. Remember that I mentioned that in very bullish circumstances we could see $2.65 or even $2.75 tested? This is still valid.

I did a partial divestment at $2.65 today. If the following week should see price pushing higher, I would be happy to divest once more. $2.75? It could happen although I see the declining 200dMA now at $2.73. This could limit further appreciation in price. Although bulls could push past this resistance, it would surprise me (pleasantly) if price could close above the 200dMA. Why do I say this?

Look at the trading volume. It has been reducing. Indeed, volume is also lower this week as compared to last week. Volume is the fuel that drives rallies and reducing volume could be an early signal of coming weakness in price. Volume precedes price.

Momentum oscillators also signal that greater caution should be exercised. On the daily charts, the MFI has entered overbought territory while the Stochastics has been overbought for some time. It is riskier to go long at present despite the return of positive momentum as shown by a rising MACD in positive territory.

Long holders could consider selling while anyone thinking of buying could consider waiting for a pull back to supports.

Related post:
Capitaland: Partial divestment at $2.48.