Categories
REIT

Alexandria Real Estate (ARE)

Richard Woon of Stripnomics has a good analysis of the challenges facing ARE.

I encourage those who are interested to find out more to visit his site.

My focus is to highlight ARE’s possible support level.

Like Richard, I have a negative outlook on ARE (and in general a number of REITs).

However, we need to be patient with ARE. For the very short term, it is unlikely to break below the support level of 32.77

Why? This is because, we have seen that level being supported 3 times since October 2008. ARE needs to have a very bad news for it to go below that level.

And, off my mind, one of the possibilities is securing refinancing needs.

For this chart, we cannot rely on the kumo for resistant analysis as ARE has a spike in price on 27 Feb. We can see that the Tenkan sen (pink line), the kumo all have ‘abnormal’ behavior because of the spike. However, we can still rely on the Chikou Span (green line) to find our support and resistant levels. 

Looking at the Kijun sen which is flattening out, it is suggesting that the price may stabilize around the trading level of 32 – 37.

 

2009mar-alexandria-real-est-inc-800x600

One reply on “Alexandria Real Estate (ARE)”

Thanks for the plug. I love the site and tinker with Ichimoku occasionally. I think the next conference call could be devastating for ARE. If it does not break down soon, I think we would be looking at October (from a fundamental analysis perspective).

I’ll be following your site from now on to learn more about Ichimoku.

Comments are closed.