Thursday, May 22, 2025

Ascendas Reit - 22 May 25

🔎 Overview

  • Stock: CapitaLand Ascendas REIT

  • Exchange: SGX

  • Ticker: A17U

  • Timeframe: Daily

  • Last Close: 2.59 SGD

  • Volume: Slightly below average, with notable spikes at key turns


1. 📈 Trend Analysis

Primary Trend (Medium Term):

  • Trend: Sideways to mild downtrend

  • From the peak at 2.99 (late Sept 2024), the stock entered a clear downtrend into late December 2024.

  • Recent structure: Lower highs and lower lows into April 2025, bottoming at 2.40 SGD before recovering.

Recent Price Structure:

  • Lower high at 2.72 (May 2025) following 2.75 (April) – suggests weakening bullish momentum.

  • Support zone retested twice at 2.49, forming a double bottom, but rally stalled at 2.72.

  • Current price action suggests a bearish drift within a larger sideways consolidation.


2. 🔍 Key Price Action Signals (Bar-by-Bar Analysis)

Significant Bars & Volume Observations:

  • Late September to October 2024: Heavy selloff from 2.99 to ~2.55, accompanied by multiple large red trend bars with expanding volume – clear distribution phase.

  • November 2024: Pin bar at 2.51 with a tail rejection and higher volume indicates temporary demand.

  • Late March 2025: Sharp reversal from 2.40 with a long wick (buying tail) – strong pin bar, demand confirmation.

  • Early April 2025: 3 bullish wide-range bars on increasing volume, broke above short-term resistance at 2.54, then tested and rallied to 2.75.

  • Late April - May 2025: Volume spikes during rejection at 2.72, followed by 5 consecutive red bars (many with small real bodies and long wicks) – showing distribution and hesitation.

Key Reversal Candles Identified:

  • Pin bar at 2.40 (March 2025) – strong demand, bottom signal.

  • Bearish engulfing at 2.75 (April 2025) – formed after recovery rally, leads to decline.

  • Doji cluster (May 15-20, 2025) – indecision under 2.59, hinting at potential breakdown.


3. 🔄 Support & Resistance Levels

Key Resistance:

  • 2.99 – Major resistance (2024 high)

  • 2.80 / 2.75 / 2.72 – Intermediate resistance levels from recent swing highs

  • 2.66 – Important resistance capped multiple rallies (Feb, March 2025)

Key Support:

  • 2.40 – Strong recent support (double bottom)

  • 2.49 – Short-term support zone, bounce observed twice

  • 2.53-2.55 – Minor support level from Feb consolidation


4. 📊 Breakout & Pullback Analysis

  • Breakouts:

    • April rally (2.40 → 2.75) was a legitimate breakout from a base, backed by volume.

    • However, breakout failed to establish new highs, and price reversed at 2.75/2.72, creating a bull trap.

  • Pullbacks:

    • Recent pullback from 2.72 → 2.59 shows orderly retracement but volume is not confirming aggressive buying yet.

  • Currently: Sitting at a potential pivot – either forming a higher low (bullish continuation) or lower high breakdown (trend continuation).


5. 🧭 Market Context & Trading Bias

Market Type: Ranging with bearish undertone

  • Price is stuck between 2.40 and 2.75, with recent weakness at the upper range.

  • Trend bars are smaller, overlapping – indicating loss of conviction and rising indecision.

Trader Psychology:

  • Bearish sentiment near highs (2.72–2.75) → profit-taking, supply pressure

  • Cautious optimism near 2.40 → accumulation interest

  • Current structure suggests short-term indecision; market awaits fresh catalysts.


6. 💼 Supply, Demand & Liquidity Analysis

  • High volume selling spikes during Oct–Dec 2024 marked supply zones.

  • April 2025 volume surge at 2.40 → marked demand inflow.

  • Current volume on recent decline is not heavy, implying no panic selling – suggesting pullback, not breakdown (yet).

Trade Setups Identified:

  • Pullback Buy Opportunity if price holds above 2.55–2.53 zone with bullish bar and volume confirmation.

  • Breakdown Play if 2.49 fails with a strong red bar on volume – potential return to test 2.40.


7. 🛡️ Risk Management Strategy

Bullish Scenario (Pullback Buy):

  • Entry: 2.58–2.60 on bullish confirmation bar

  • Stop Loss: Below 2.49

  • Target 1: 2.72

  • Target 2: 2.80

  • Risk:Reward: ~1:2.5

Bearish Scenario (Breakdown Play):

  • Entry: Below 2.49 with strong bearish candle

  • Stop Loss: Above 2.59

  • Target: 2.40, then potentially 2.30

  • Risk:Reward: ~1:2


8. 📰 Company News (Past 3 Months)

🗓️ 1. CapitaLand Ascendas REIT Q1 2025 Earnings Report – May 3, 2025

  • Source: SGX

  • Summary: Q1 DPU (Distribution per Unit) slightly declined YoY due to higher interest expenses and some lease expiries. However, portfolio occupancy remained strong at 94.5%.

  • Sentiment: Neutral to Mildly Negative

🗓️ 2. Strategic Asset Divestment Announcement – April 17, 2025

  • Source: Business Times

  • Summary: The REIT announced the sale of two older industrial assets in Singapore, aligning with its capital recycling strategy.

  • Sentiment: Neutral to Positive

🗓️ 3. Fitch Maintains 'A-' Credit Rating – March 28, 2025

  • Summary: Credit outlook stable, citing prudent capital management and strong occupancy rates.

  • Sentiment: Positive


Summary & Final Technical Outlook

📌 Trend: Range-bound with mild bearish bias

📌 Support Zone: 2.49–2.53

📌 Resistance Zone: 2.72–2.75

📌 Volume: Quietly tapering, signaling indecision

📌 Bias: Neutral-short term, cautiously bullish medium-term if 2.49 holds


Final Call by Timeframe:

  • Short-Term (1–2 weeks): Neutral to slightly bearish → likely retest of 2.49 unless strong bull bar appears

  • Medium-Term (1–3 months): Cautiously bullish if 2.49 holds; possible breakout above 2.72

  • Long-Term (3–12 months): Neutral to bullish, assuming macro environment and REIT fundamentals remain stable


Disclaimer:Please note that this analysis is for educational purposes only and should not be taken as investment advice. Trading involves significant risk, and you should consult with a financial advisor before making any decisions.

Dividend:   5.78%



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