Huge Market Selloff Again

After several weeks of price sideways, a huge wave of economic turbulence rocked the stock market yesterday and today. Yesterday was the worst punishment for cynical stocks, with my 2 REIT counters fell through their resistance prices.

AIMSAMP REIT, 26/9/11

Looking at the graph, this REIT seems to be relatively stable as price hovered around $0.205 and $0.20. Yesterday it fell down to $0.197, barely missing the $0.195 strong resistance and also the most ideal price to enjoy above-10% dividend yield. The last time it scrapped this price was in March, the month of the Japanese multi-disasters. With enough investable cash, I launched a small buy order at $0.195 but was not fulfilled due to large buy orders queuing up for the same price. Well, a lesson learnt today - if $0.195 seems pretty attractive for many investors, why not try $0.196? After all, $0.196 is still an ideal price. 

AIMSAMP REIT, 26/9/11 (including 2010)

I posted this graph, same as above but with much longer term that stretches all the way back to 2010. The rationale for this is to trace the next lower resistance line. $0.19 might seem to be the next best price but I personally prefer $0.185. This is because the $0.185 resistance price was tested twice in the graph before the next bullish uptrend. Still not get what I mean? Looking closer to the graph, you see that at both May 2010 and Jun 2011, this REIT tested the $0.185 after a downtrend and quickly reversed into an uptrend.

Using the ADX indicator, the DI+ has crossed below the DI- which suggests a bearish signal but the ADX line tells me that the bearish sentiments are relatively weak.

Starhill Global REIT, 27/9/11

This REIT took a greater hit than AIMSAMP, with price fell to as low as $0.575. I guess that is because of the riskier nature of retail real-estate as compared to industrial real-estate, thus explaining the higher volatility of Starhill Global. Let's take a look at the longer-term graph. 

Starhill Global REIT (included 2010)

The first thing that captures my attention is the ADX indicator, which suggests a downtrend with increasing strength. The ADX line has moved above the 20 value. If the price breaks through the $0.575 in coming days, there is a chance that it might reach the $0.55 resistance line. Notice that this resistance line was tested last year before price went for a huge uptrend. $0.535 and $0.51 are also possible regions for the price to descend. 

That's all for the painstaking efforts to analyse my counters.