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Suntec, will a potential rebound happen?

SuntecREIT had been going down for 1 over month without a significant rebound. Technically it is very oversold. 1.55 is an important support which was broken on 27 Nov but price closed high and formed a false breakout, which is a typical bear trap. MACD historgram also showed a bullish divergence indicating that the sellers are becoming weaker. This stock may have a strong rebound soon. One may consider enter before it happens to catch this trading opportunity. From fundamental perspective, the recent quarterly statement released 24 Oct reported an increase of revenue and net income of 5.3% and 8.5%, respectively, indicating that the REIT is stable. Considering Suntec City just completed a major renovation in late June, with the increasing of shoppers in the next a few month, especially during Christmas-new year season, financial report may have a gradual improvement because of stronger needs in rental. Besides, the dividend for SuntecReit at the current price level will be around 6%. In conclusion, it will not be risky to buy SuntecREIT from the fundamental perspective. This setup is to catch a rebound for an oversold stock. Short term wise, the price is not likely to go above the high made in late Oct and this trade is a short term one in terms of time frame.

Robin Han
Robin Han

Dr. Robin Han, a graduated from NUS with a Ph.D in Department of Chemical and Biomolecular Engineering, has been actively trading in Singapore stock market since 2007. His passion has let Dr. Robin to become a full time trader since 2010. He has extensively share his experience with his fellow investors on trading Singapore stock market using both technical analysis and fundamental analysis.

Dr. Robin is a regular guest speaker for radio 95.8 on financial program. He also has been invited by different companies and societies to conduct educational seminars on stock investments, including Shares Investment, Wealth Directions (Founder: Dennis Ng), Traders Round Table, SIM, Raffles Business International, Online trader's club and Alpha Alliance. He is also contracted by N2N (a listed trading software provider in Malaysia) as their overseas educational speaker in stocks.