Shares & Derivatives
Cache Logistics Trust: Accumulate on weakness.
By A Singaporean Stockmarket Investor (ASSI)  •  April 15, 2011
We could be seeing the final move in the formation of a reverse head and shoulders pattern. Volume has been reducing as price weakened from a high of 96c on 4 April. The counter closed at 93.5c today. What do I like?
1. Low volume pull back. 2. ADX suggests a lack of trend. Looking at the Stochatics, it has entered oversold territory. 3. Potential reverse head and shoulders pattern. Watch out for price possibly testing 93c or even 92.5c for support. 4. Results and income distribution will be announced on 26 April. Expecting that to be a catalyst to send price higher. So, if the pattern is valid, how high could the price go? Well, the low of the pattern was seen on 15 March and that's at 91c. The neckline of the pattern is at 96c. Projecting this difference forward would give us a target of ......
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By A Singaporean Stockmarket Investor (ASSI)
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