Sep 20, 2014

Parkway Life REIT selling pressure


Bearish break suggests more downside ahead



Key supports breached.
Parkway Life REIT could face further selling pressure after failing to overcome its 1.5-year downtrend resistance recently; this was followed by a strong bearish break of both its 5-year uptrend support and $2.35 key support on heavy volume yesterday.

Indicator is bearish. The MACD has just initiated a sharp bearish crossover right below its centerline, suggesting that the downside momentum is accelerating.

Target price at $2.15. The counter could possibly slide towards the next key base at $2.15 (key resistance-turned-support) in the weeks ahead.

Stop loss level at $2.40. Meanwhile, we advocate a stop-loss exit for short sellers around $2.40, which is slightly above the newly established support-turned-resistance of $2.35.


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