Market News & Analysis
Link REIT Issues a Profit Warning
Medion Jim May 5, 2020 3:18 PM
Besides, Hong Kong's 1Q GDP sank 8.9% on year (-6.5% expected), the largest decline in record, according to the government. The gloomy economic activity could affect Link REIT as the portfolio of Link REIT focuses on the Hong Kong market.
From a technical point of view, the stock remains capped by a declining trend line drawn from January top on a daily chart. The declining 50-day moving average is also acting as resistance. The RSI also failed to penetrate the previous high at 54, suggesting the lack of upward momentum for the prices. As long as the previous high at $71.25 is not surpassed, the stock could consider another down leg to the previous bottom at $62.65 and the 127.2 retracement level at $60.30.
In an alternative scenario, a break above the previous high at $71.25 would suggest the bullish breakout of the declining trend line and trigger a rebound to next resistance level at $75.25.
Source: GAIN Capital, TradingView
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