Hi All,I have been introduced to this stock and am coming in...

Hi All,

I have been introduced to this stock and am coming in cold with very little fundamental analysis, and as such I am looking at the chart from a TA perspective only. I havent given any consideration to dilution of shareholder value through capital raisings, etc. I have had a look at some trend analysis and thought I would share. I hope you all agree.

The stock looks good to me with a nice return ahead. However, I am just very cautious of these Real Estate stocks that have been beaten down over the last year and half, and I dont think they are all safe yet.

I will put two weekly charts on to fully grasp the big and small pictures. The first shows the long term down trend and massive fall in price. I have run a fibonacci retracement down from the peak to the bottom and we can see the next major level is around 31c. This would be my target 2. You can also see how well the price reacted at each the fib levels.



The next chart is more useful and we can analyse the current trend and next likely target. Firstly, we can run a nice trendline up that fits the Gann Swing points well. The stock is clearly trending up and we can see a buy on the weekly Gann Swing chart that was made once the stock traded above 7c. We have also just completed a 10-bar counter trend that fits inside the acceptable range of under 11 weekly bars. The buy point in accordance with the counter trend theory would have been at 6.9c. This also ended right on the uptrend line where we expect a series of high prices to be traded and this is the fifth week that satisfies this.

So we have an uptrending stock that has bounced off the uptrend line and is well down from previous highs. All good in my book. If you like inidcators you can see that this analysis is supported by the crossing and rising stochastics and MACD, plus we have the money flow indicating some good buying for many months now.

My next price target would be at 17c. I have calculated this based on the previous price range dropping from 33c to 1.4c and using the significant Fib/Gann level of 50% as follows:

((33c - 1.4c)*50%) + 1.4c = 17.2c

I used this price to go back in time and check if there was any significance on the chart and we can see a trading range of inside and outside bars for a few weeks at this level. Its a small consolidation zone, but nonetheless it is there. This will be the next most significant level in my book and short term holders would be watching to see how it reacts at this level. If it punches through - great!

Now, as for the stop loss. I am thinking with a REIT you need to keep it tight. My thoughts are that anything below the trend line is bad... I would have it around the mid to high 5's, say 5.7c.

Good luck everyone.