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.