Tuesday, February 11, 2020

Mapletree Log Trust: Seems to be defensive despite current virus pandemic. Price 1.88. Can the uptrend continue?

Just about 1 month back at the beginning of the year, we saw some bullish actions in Mapletree Log Trust.

The uptrend was firm over the past few months but it was just not able to break the 1.75 key resistance since Oct last year…

This was before CNY and also before the escalation of the current virus pandemic.

Some upside targets were drawn towards 1.90 as seen below when we finally saw some decent price actions..

Buyers were finally ready to take it higher and sellers cannot withstand anymore.

Trend indicators were also looking positive on this move pointing to a strong uptrend..…

Let’s see what happens over the past few weeks as the virus situation escalated to current orange code.

As the virus situation getting worst, we saw a move higher with an attempt to break the 1.80 level too..

Target was reiterated to 1.90.

Despite market selling off on fears of the virus spreading further on Singapore shores, this counter was surprising still quite defensive.

Can see that buyers were coming back to buy on dips on any slight fall which kind of supported prices..

Perhaps, this is due to the defensive nature of industrial Reits where tenants have longer tenures and hence less likely to be affected compared to the retail sector where Retail Reits got hit badly..

Fast forward to today, we have already hit our 1.90 target last week as when first drawn..

There is some profit taking seen for now which is normal given the more than 8% gain when it was first covered…

However, seems like there is also some good support returning near 1.85 over the past few days..

Here is also where the 20 day Moving average is also which can lend some technical support..

Some selling seen near 1.90 -1.92 for now but we may eventually attempt to push higher towards revised target at 2.00 as seen below..

Watching for now to see if the upside can continue further while protecting profits…

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