Technical outlook – Investec Australia Property Fund (IAP) briefly slipped off the road on Friday after stabbing at a $1.51 low before rebounding and posting a bullish signal, a Dragonfly Doji.
The Dragonfly Doji is a Japanese candlestick pattern and acts as an indication of indecision in the market’s direction, which in terms could possibly lead to a trend reversal in price, either the downside or upside, depending on past price action, (in this case bullish).
It’s formed when the asset’s high, open, and close prices are the same and are relatively easy to spot in a candlestick chart due to its unique “T” shape. In theory, when formed at the bottom of a downtrend, the dragonfly doji is considered a reliable indication of a trend reversal.
With that being said, we still need confirmation to this bullish sign, a decisive break of $1.58 should give the call to the bulls and support a news target of $1.70. Reassess from there.
Company Overview – Investec Australia Property Fund (IAP) is an Australian domiciled real estate investment trust that is registered in Australia under the Corporations Act 2001 as a managed investment scheme and regulated by the Australia Securities and Investments Commission. As the responsible entity of the Fund, Investec Property Limited has the primary responsibility for the governance and operation of the Fund.
The Fund has been established to invest in quality commercial real estate (office, industrial and retail) that is well located in major metropolitan cities or established commercial precincts in Australia and New Zealand.