A Property Laggard
The A-REIT sector was far from immune to the effects of the global financial crisis, but most of the property trusts have recovered at least to some extent.
Trinity group collapsed to a low of 4.5 cents 01/07/10 on the enclosed weekly chart.
Since then a recovery of sorts has occurred, but the uptrend stalled in May 2012, and since then the share-price has moved in a tight trading range between 23 and 27 cents.
In the last six weeks there has been a short triangular formation at the upper level of the trading range resistance, from which an unconvincing break-out has occurred to the upside, suggesting that the share-price might be about to recommence an upward trend.
Possible target price
For inspiration in setting a possible target in the event that the share-price does resume trending higher, I have looked to the monthly chart with Fibonacci levels displayed.
The 23.6% Fibonacci level is not usually employed, but it is the first step of the Fibonacci ladder to climb towards the high of $3 prior to the GFC. Of course Trinity might never reach these heights again, and it could falter after each advance.
This level is at 72 cents, and given favourable trading conditions next year, it is possible the uptrend could accelerate to reach this target by the end of the financial year.
It is perhaps a big call, but there is evidence of a turn-around in fortunes for Trinity.
This is a chart only evaluation of Trinity, and takes no note of fundamental considerations. It is a my opinion based on current evidence. Readers should not rely on the views expressed but seek independent professional investment advice.
- Trinity Limited : AGM – Chairman’s Address “ (4-traders.com)
- Trinity Limited : Appointment of Bevan Towning as CIO “ (4-traders.com)
- REITS squeezed out as private buyers scoop up Canadian real estate (business.financialpost.com)
Categories: Chart Analyses, Technical Analysis, Trading opinion
Leave a Reply