Trade of the Day

Prime US REIT (SGX: OXMU)

(Current Price: US$0.280) – TECHNICAL BUY

Buy price: US$0.270     Stop loss: US$0.250     Take profit 1: US$0.295

Take profit 2: US$0.335 

The price found support at the downtrend channel support with bullish divergence seen on the Relative Strength Index (RSI) technical indicator, which made a higher low while price retraced lower to the channel support. The Moving Average Convergence Divergence (MACD) indicator also formed a fresh positive crossover on 24 April, which provides a bullish signal.

We could see a relief rally to retest the US$0.295 resistance level, which was a recent horizontal support that the price broke down; followed by the next resistance level at US$0.335, which was a recent swing high formed in April this year confluent with the downtrend channel resistance.

Expected timeline of the trade is 1-4 weeks from the date of report issuance.

Our research team has a fundamental recommendation of ‘BUY’ for this counter and a target price of US$0.700.