Extreme low volume day. Volume has not been so low in more than two weeks. There has been some profit taking going on but price has stayed firmly above the 20dMA. MFI shows a decline in buying momentum and OBV shows that some distribution has been taking place. Despite all this, price has stayed at 17c and this shows strong support. If 17c gives way, we should find a stronger support at 16.5c, provided by the rising 50dMA. It is my personal believe that 16.5c is the new floor for Saizen REIT if it is ever tested.
Many must be wondering at the weakness displayed by this counter in recent sessions. If we take a look at the weekly chart, it becomes quite clear why this has been so. Saizen REIT has one big hurdle to cross before it can go higher: the 100wMA. This descending 100wMA is a powerful negative force, a strong resistance. It is now at 17.5c. Chart:
The Saizen CEO has been accumulating this stock since last year. I think 1 or 2 other directors have been buying too. On hindsight, they were too early. The stock has yet to move up sharply. Fundamentally, there shld be a small dividend coming .... but the normal payout can only resume much further down the road.
FA is about value. TA is about price. Although this REIT is still severely undervalued, when negative sentiments rule, its price could get pushed down lower. My overnight buy queue at 16c was not done. I am back in the queue. For people who are hoping to make a quick buck, this might not be a good time to buy in. MFI has formed a lower low and OBV is down. MACD is under zero. All technicals are bearish except for a consistent picture of low volume pullback. If this counter tests the rising 200dMA at 15.5c, I would buy more.