Cambridge Industrial Trust

I found a technical analysis report issued by OCBC regarding CIT at 04 May 2012.

Closing Price:$0.57
Last Market Volume: 3.4m shares
52 Week Range: $0.40 - $0.57

More upside ahead after bullish break
Key resistance overcame. Cambridge Industrial Trust is likely to see further recovery after initiating a rebound off its 9-month uptrend support recently; this was followed by a strong bullish break above the $0.56 key resistance on heavy volume yesterday.


Indicator is bullish. The MACD has just initiated a bullish crossover as well; this suggests that the upside
momentum is picking up again.


Next resistance at $0.66. The counter is likely to climb further towards the next key obstacle at $0.66 (peak in 2008) in the weeks ahead.


Immediate support at $0.56. Meanwhile, we advocate
a stop-loss exit at around $0.53, which is slightly below
the newly established resistance-turned-support of $0.56.

CIT broke the immediate support by today! It dropped to 0.55 due to overall unfavorable shares market. Can we make the assumption that the bullish forms is over? Erm.... i think CIT is stable yet, do not need to run now.

Although this report is a bit optimistic toward the CIT but i have to admit that it recommended a good stop loss exit point. If the shares market collapses and lead to CIT drops below 0.53, we really have to sell immediately. It is because CIT just resume their Dividend Reinvestment Plan and their offered price also about 0.53. It brings me the message that CIT management concluded their shares price worth more then that value at recent market. If it happened another way round (Drop beyond 0.53) due to uncontrollable overall shares market, then we have to just run. Next deep dive can be expected.

Anyway i hope this assumption not going to happen but i am preparing for the worst. If happen, at least i know how to re-act.