SGX: SuntexReit - No sign of uptrend soon.

SGX: SUNTECReit - 13 March 2008. We continue with the analysis of SuntecReit. Now we use the "Ribbon Study" to gauge if any upward trend is possible soon. The first compressing threads during the period from 2004-mid 2006 was an indicator of a powerful price movement in time to come. This came true after mid 2006 when the threads smoothen out following an uptrend. During mid 2007, another compressing threads started to emerge and was a sign of yet another powerful price movement. This time, a downward trend happened.

Looking prospectively, the current threads of SuntecReit is still smooth towards the downside. There is no sign of any compressing threads, meaning that the path which this stock will follow is still downwards at least for the next month. We will continue to monitor for any signs of another compressing threads.