Q: I need to raise some funds and am looking at selling a position in DIR.UN. I have read the past questions and overall you are fairly positive about it, if one is patient. I probably will not be in this for the long term....though not your usual way to look at stocks, would you be able to do some technical analysis to get some idea whether this will bounce back from its recent downturn, at least a bit, in the next month or two?
Thanks much for your excellent service.
Thanks much for your excellent service.
5i Research Answer:
Short-term moves are quite hard to predict, but on the monthly, momentum is currently negative. This means over the next month or more we might expect the probabilities of lower prices to be a bit higher than higher prices. On a weekly basis, momentum is bouncing back, and we might see a slight bounce over the next week or two, but there is resistance at $13. We expect there to be fairly strong support at $12.3, and if that is broken, then $11.5 may be up next. If it can break $13, then $14 is the next area of resistance. Overall, it's been in a downtrend for over a year, but we continue to like its fundamentals, and it pays a strong distribution yield.