Keppel DC REIT (SGX: AJBU) corrective downside is potentially coming to an end after the technical indicate bullish signals:
- The formation of a potential double bottom is indicative of an impending bullish reversal. Once prices break the neckline resistance zone at $2.68-$2.75, the bullish upside will be confirmed.
- On the 2nd bottom, the bullish pin-bar acts as an 2nd bullish reversal signal after the potential double bottom.
- The relative strength index has indicated oversold, which means that there will be a mean reversion to the upside.
*Timeline of the trade is 6 weeks from the date issued.
*The worrying issue remain as prices is still trending below all three major moving averages. Besides that, the confirmation of an upside is needed to break the neckline resistance zone. Hence, should prices fails to break, we could see prices reverting to the lower support at $2.40 region.
Red dotted line = 200 periods Moving Average
Blue dotted line = 50 periods Moving Average
Green dotted line = 22 periods Moving Average
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We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a stock`s risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation
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