On Tuesday, SuntecReit re-tested the major resistance at $1.42 and closed at $1.42 with LOW volume of 4.24 million shares traded.
A white candle sticks with no upper/lower shadow display the determination in investors wanting to break the major resistance.
Both RSI & MACD are bullish as RSI continue to trend upwards.
Important Resistance of SuntecReit: $1.42
Immediate Support of SuntecReit: $1.39
Currently prices are well supported above 20/50/100/200 days MA
Till now prices are well supported by the “rising trend line” but we would not encourage entering now.
Going upwards, SuntecReit will have many resistances to overcome such as $1.42 & $1.45 respectively.
We will suggest entering if prices can breakout of major resistance $1.45 at HIGH volume.
On Tuesday, Ezra announced the one-for-five rights priced at S$1.18 each.
Both RSI & MACD are turning flat as MACD lines began to converge.
Important Resistance of Ezra: $1.82
Immediate Support of Ezra: $1.74
Currently prices are well below the 20/50/100/200 days MA
Given that Ezra announced “Right issues” today, most likely it will create a knee jerk effect on the prices and create selling pressure.
However current prices are almost at “oversold region” thus we would not think it will be a big drop.
Many readers have asked about this stock today but it would not be wise to enter on the first day since we are unsure of its impact.
Instead we will monitor respective support/resistance as plotted on my chart to see if price can be supported at that level before entry.
Gentle reminder: Do not attempt to catch a falling knife as it is very dangerous.
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