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Alexandria Real Estate (ARE) : Ichimoku Chart Reading

As posted yesterday, Alexandria Real Estate (ARE) cuts dividend.

With its fundamentals deteriorating, the chart is showing more promises on the short side.

  1. For this chart, I am relying solely on Chikou Span (green lines) to identify the support-resistant levels. This is because the Tenkan sen and the Kijun sen has been ‘screwed’ by a trade that goes to $66 a couple of weeks back. Good thing, Chikou Span keeps its sanity and provide the required information.
  2. Here we can see that  ARE hit the first resistant at $42 and turn. That does not mean much. But, I always pay attention when things turn.
  3. With yesterday’s news, ARE has a gap down and a major sell down on high volume. Along the way, it break through the $37 support level.
  4. Stochastic also shows a bearish cross with the major trend still down.
  5. I will be watching the US$33 support level. It has been supported on that level for a few times. And it may well be supported again until there are new developments that says otherwise.

 

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3 replies on “Alexandria Real Estate (ARE) : Ichimoku Chart Reading”

Seems like it’s just churning along right now. The earnings release will be bad and likely followed by lots of selling by the execs after the lockup expires. The CEO has not been shy about massive selling after every earnings call.

I’ll be paying attention to your thoughts. Keep it up!

I shorted ARE but decide to close off the position towards the end of the day.

Reason to short: It break the support at $32.82

Reason to cover:
1. I am being very careful here. While the major indices looks weak, option expiration is just around the corner (this Friday).

2. Also, the volume isn’t as high as I want it to be.

3. I am expecting that there may be a little bounce from the current level before the move downwards start again (this is across the board and is not ARE specified.). Still looking for the elusive catalyst for this to happen.

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