Technical Pulse: Mapletree Logistics Trust July 28, 2020 212

Mapletree Logistics Trust (SGX: M44U) enjoyed an impressive rally since our report on 17th June. Falling short of our target price of $2.25, we are expecting a correction after the recent technicals:

  1. The rising wedge formation indicates that Mapletree is approaching a cooling down in the bullish momentum by consolidating at the tip of the wedge.
  2. Although Mapletree made a new high after breaking the March 2020 high, the evening star formation below 1.13% extension level of $1.20-$2.08 point to weakness ahead.
  3. Relative Strength Index is showing a bearish divergence, indicative of a weak momentum ahead.

 

 

*Timeline of the trade should be between 1-3 weeks from the date issued.

*Mapletree is still in a bullish uptrend as indicated by the 200 and 50-day moving average. The short call is to take advantage of the corrective action of the thrust.

 

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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