Mapletree Logistics Trust (SGX: M44U): Bullish Bottom Reversal Confirmed
Recommendation: Technical Buy
- Entry Prices: S$1.40, S$1.31, S$1.24
- Stop Loss: S$1.19
- Target Prices: S$1.50, S$1.68, S$1.73, S$1.78
- Date of Recommendation: September 9, 2024
- Broker Company: CGS-CIMB Securities
Investment Thesis:
Mapletree Logistics Trust (MLT), an Asia-focused logistics REIT, has confirmed a bullish bottom reversal signal. This reversal pattern, paired with several technical indicators, suggests that the stock is likely to see upward movement in the near term.
Key factors driving the bullish outlook include:
- Inverted Head and Shoulders Formation: The stock has confirmed an inverted head and shoulders pattern, breaking above the neckline resistance turned support at S$1.35. This is a strong bullish signal that the stock could continue rising.
- Positive MACD Histogram: The MACD and its signal line are both rising above the zero line, indicating a potential upward momentum.
- Rising Stochastic Oscillator: The oscillator is above the 50-level, further supporting the bullish momentum.
- Volume Expansion: The stock has shown healthy expansion in volume, reinforcing the bullish strength.
Company Overview:
Mapletree Logistics Trust focuses on investing in income-producing logistics properties across Asia. Its portfolio includes assets in Singapore, Japan, Hong Kong, South Korea, China, Australia, Malaysia, and Vietnam.
Valuation and Catalysts:
- Support Levels: S$1.35, S$1.22
- Resistance Levels: S$1.54, S$1.68
- Target Prices: The stock has multiple target prices, with the first at S$1.50, followed by S$1.68, S$1.73, and finally S$1.78.
Given the technical indicators and the confirmed reversal pattern, investors are recommended to consider buying Mapletree Logistics Trust with a stop loss set at S$1.19 to manage risk.
Thank you
