You can tell how high a society is by how much of its garbage is recycled.
~ Dhiyani Ywahoo
~ Dhiyani Ywahoo
Personally, it's a pretty bleak picture for this counter. From the chart above, Keppel Corp spin-off K-Green Trust seems to be trapped in a downtrend channel. MFI & OBV have been trending lower and making lower highs suggesting more distribution and selling. Furthermore, ADX shows that this selling trend is rather strong, above 30, and looks to be rising. -DI has also turned up and seems likely to rise higher. Lastly, Stochastics look set to cross once more despite being in oversold regions.
Currently at $1.04, it is lying on a previous support. There's not much of charting history for this counter so it's hard to determine how strong this support is. The immediate support below this is $1.00. If all goes well, the doji formed together may signal a rebound in the coming days. But my opinion is that the rebound is only for the short term and prices may very well eventually make their way down to touch the $1.00 support as long as they stay in their downtrending channel. Needs to break above $1.08 to get out of this.
Uncertain & risky in terms of capital preservation based strictly on share price. However, there is a plus of the current yield being at 7.5% which allows share price to drop to $0.96 before any paper loss is seen. Plus support at $1.00 may prevent share prices from dropping below it. Pretty attractive as an income stock with a strong sponsor, zero gearing and a 10% discount to NAV at $1.15 per share. May get ready to accumulate if you believe in the fundamentals of the trust and if you believe in it not dropping below $0.96. Good luck!
Not vested. Just for practice. If you've any comments, corrections, pls let me know by posting below. =)
~K
