Frasers Centrepoint Trust Faces Bearish Reversal Amidst Overbought Momentum

Date: October 11, 2024
Broker: CGS-CIMB Securities

Overview of Frasers Centrepoint Trust

Frasers Centrepoint Trust (FCT) is a Singapore-domiciled retail real estate investment trust (REIT). The Trust primarily invests in income-producing properties, mainly used for retail purposes in Singapore and potentially overseas. It is listed on the Singapore Exchange.

Recent Price Movement

As of October 11, 2024, FCT’s last traded price was S$2.27. The stock has shown signs of topping out after reaching a high of S$2.43 in September 2024, followed by strong bearish pressure. As a result, CGS-CIMB has initiated a “Sell” call based on the following technical indicators and price action.

Technical Indicators

Several technical indicators signal a bearish reversal for Frasers Centrepoint Trust:

1. Support and Resistance Levels:

   • Entry Prices: S$2.27, S$2.32, S$2.40
   • Support 1: S$2.11
   • Support 2: S$1.90
   • Stop Loss: S$2.45
   • Resistance 1: S$2.31
   • Resistance 2: S$2.43

2. Target Prices:

   • Target 1: S$2.12
   • Target 2: S$2.06
   • Target 3: S$2.00
   • Target 4: S$1.90

3. Technical Signals:

   • The stock has broken below the S$2.31 support, which is now a resistance level. This action confirms a rounding top bearish reversal pattern.
   • The Ichimoku cloud shows two out of three bearish death crosses, and leading spans A and B are likely to converge and cross soon.
   • MACD/Signal line crossover at the top, with a negative histogram, indicates a bearish momentum.
   • Stochastic oscillator confirms the overbought crossover, having fallen below the 80-line.
   • The 23-period ROC (Rate of Change) has dipped below the zero line.
   • Volume peaked during the selling session on September 20, 2024, indicating persistent selling pressure.

Analyst Insight

The report by analyst Chua Wei Ren, CMT, outlines that the stock is showing signs of a bearish reversal, driven by overbought momentum. The decline is further supported by the weakening of various technical indicators, suggesting that the downward trend may continue for some time.

For further inquiries, Chua Wei Ren can be contacted at:
Phone: (65) 6210 8612
Email: weiren.chua@cgsi.com

Source: CGS-CIMB Securities, October 11, 2024, Powered by EFA Platform