Contents:
- Introduction
- Hybrid 10-Step Trading Strategy Review
- Final Trade Recommendation
- Next Steps
Introduction
MREIT, Inc. (MREIT) continues to be a key player in the Philippine REIT market, offering investors a balance between capital appreciation and dividend income. As of January 31, 2025, MREIT is stabilizing after a prolonged downtrend, with technical signals suggesting a potential shift in momentum.
Trade Details:
- Stock: MREIT, Inc. (MREIT)
- Exchange: PSE
- Timeframe: Monthly
- Date: January 31, 2025
- Closing Price: 13.50
- High: 13.66
- Low: 13.00
- 20-MA (Short-Term Trend): 13.18
- 200-MA (Long-Term Trend): Not yet available
Key Pullback Levels:
- 100% Pullback: 16.00 (Major resistance zone)
- 75% Pullback: 14.50 (Previous strong rejection area)
- 50% Pullback: 13.50 (Current short-term resistance)
- 0% Pullback: 12.00 (Key support level)
This stock price review follows our Hybrid 10-Step Trading Strategy to ensure a structured and comprehensive assessment.
MREIT, Inc. (MREIT) Monthly Chart as of January 31, 2025
Hybrid 10-Step Trading Strategy Review
Step 1: Identify Market State & Trend Context
- The long-term trend remains neutral to bearish, but the price has recently stabilized above the 20-MA (13.18).
- The 20-MA is flattening, which could indicate a transition to an accumulation phase.
- Price is testing the 13.50 resistance zone, needing further confirmation for an uptrend.
✅ Market State: Stabilizing with a potential bullish transition.
🛑 Decision: HOLD – Await a decisive breakout above 13.50.
Step 2: Price Position & Retracement Zones
- Near-Term Position: Price is slightly above the 20-MA, signaling improving momentum.
- Retracement Zone: 13.50 serves as an immediate resistance, while 12.00 remains a critical support level.
✅ Favorable for gradual accumulation above 13.00.
🛑 Decision: HOLD – Avoid aggressive buying until a breakout is confirmed.
Step 3: Power Bars, Breakout Signals & Volume Confirmation
- January closed with a small green candle, indicating controlled buying pressure.
- Volume is moderate, meaning buyers are present but not yet dominant.
✅ Buying pressure present, but not yet a strong breakout.
🛑 Decision: WAIT – Confirmation needed above 14.00.
Step 4: Entry Confirmation Based on Technical Signals
- BUY trade at 13.50 (200 shares on January 27) was executed at a key resistance level.
- A breakout above 14.00 is needed to confirm the uptrend.
🛑 Decision: WAIT – Monitor price action before adding more positions.
Step 5: Stop-Loss Positioning & Risk Management
- Stop-loss should be placed below 12.50 to protect against a downside move.
- Risk is controlled as long as the price remains above 13.00.
✅ Defined risk, manageable position.
🛑 Decision: HOLD – No immediate stop-loss adjustment needed.
Step 6: Color Change Signals for Additional Confirmation
- Green candle in January suggests buyers are present but not dominant.
🛑 Decision: WAIT – Confirmation required in February.
Step 7: Profit-Taking Strategies with Tactical Exits
- If price moves above 14.50, consider partial exits to secure profits.
- Dividends provide an additional incentive for holding.
✅ Holding for dividends and potential appreciation.
🛑 Decision: HOLD – No immediate need to exit.
Step 8: Potential Re-Entry Zones
- Best re-entry zone is near 13.00 if support holds.
✅ Consider adding on dips above 13.00.
🛑 Decision: WAIT – No new entries unless price stabilizes.
Step 9: Tactical Position Adjustments
- The BUY trade at 13.50 is a small position, allowing for flexibility.
- If price stabilizes above 14.00, adding to the position can be considered.
🛑 Decision: HOLD – Monitor trend before making adjustments.
Step 10: Counter-Trend Trading Considerations
- No counter-trend trade needed as the stock remains in a stabilization phase.
🛑 Decision: HOLD – No counter-trend action required.
Final Trade Recommendation
✅ Final Trade Recommendation: HOLD
✅ Recommendation: Maintain existing positions at 13.50, but avoid adding aggressively until a confirmed breakout above 14.00.
✅ Risk Management: Stop-loss below 12.50 to manage downside risk.
✅ Profit-Taking Strategy: Target 14.50 - 15.00 for partial exits upon breakout.
✅ Position Size Strategy: Hold the current position and consider adding if price stabilizes above 13.00 with volume confirmation.
Next Steps
🔹 Short-term traders → Wait for a breakout above 14.00 before adding positions.
🔹 Long-term investors → Hold positions for dividends, as REITs offer income stability.
🔹 Existing holders → Watch the 13.00 level for support confirmation.
🚨 Final Thought: MREIT is stabilizing, but confirmation of an uptrend requires a breakout above 14.00. Wait for momentum before adding. 🚨
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
No comments:
Post a Comment