Posts
I have a friend who told me that he wants to buy more of China Minzhong at 50c. Why 50c? He can't quite say. Anyway, at 50c, I would have lost almost half of my initial investment in the company...
What does the chart say? Momentum is definitely negative and the MACD is still in decline. What is encouraging is the reducing volume over the last three sessions although it remains elevated. Today, a white spinning top was formed. Could this be a reversal signal?
Well. the OBV is still in decline which suggests distribution is ongoing even as price weakened. The MFI though seems to be forming a higher low.
The MFI takes into consideration both volume and price and is often seen as a measurement of demand momentum. So, it is telling us that there is some demand coming back as the stock was savagely sold down. A rebound could be on the horizon and we could see gap closing at 68.5c in such an instance.
Wilmar's technicals have nothing encouraging for the bulls apart for the formation of a black hammer today.
This reversal signal would need confirmation in the next session but with the other technicals very bearish, it would be a nice surprise if a reversal does happen.
Yongnam has been sold down. It touched 22c today, a level not seen since August last year.
I have looked through Yongnam's numbers and they actually still look quite good. However, the lower highs on the MFI are obvious and buying momentum is absent. So, price could drift lower which could see it testing the low of 21.5c hit last August.
Although there has been some distribution going on as suggested by a mildly declining OBV, most shareholders are just holding on. Look at the volume. Look at where the OBV was last August and where is it now. Although price has reached the low levels of last August, OBV is at a much higher level.
To me, the price weakness of recent sessions is nothing alarming. It is not a result of rampant selling. It is just that without buyers share price could continue to drift lower.
I know quite a few people are looking to possibly adding more units of Sabana REIT to their portfolios.
MACD has crossed into negative territory. MFI, a measure of demand hit 50% and turned down. The OBV suggests that distribution is ongoing. The very high volume today formed a black hammer. The high volume suggests a heightened state of activity and the black hammer suggests that bears had the upperhand. Further weakness could see supports at 93c (100dMA) and possibly 90.5c (200dMA) tested.
AIMS AMP Capital Industrial REIT's chart is similar to Sabana REIT's but uglier.
The MACD has plunged headlong into negative territory while the MFI went into oversold territory. Very bearish. The OBV suggests that strong distribution activity is ongoing. Indeed, look at the trading volume spiking today. Immediate support is at $1.08 and if that goes, we could see $1.035 tested.
Bloggy Award