Both the CSOP iEdge S-REIT ETF and Lion-Phillip S-REIT ETF have similar trajectories with both ETFs rallying since early November. The Lion-Phillip S-REIT ETF is up 16% since its low of 77 cents in November 2023, while the CSOP iEdge S-REIT ETF is up 17.7%.
The immediate rally for S-REITs in general appears to have encountered resistance. In addition, a minor negative divergence has appeared between price and short-term indicators which may lead to a temporary correction. Since the start of 2024, yields on 10-year US Treasuries have rebounded from a low of 3.78% in the closing days of 2023 to around 3.92% as of Jan 4.
Based on the charts, the CSOP iEdge S-REIT Leaders Index ETF (CSOP iEdge S-REIT ETF) is likely to find support at a tad below 82 cents with the Lion-Phillip S-REIT ETF’s support appearing at around 88 cents. Both ETFs may not be able to move much higher in the next few weeks as strong resistance appears. For the CSOP iEdge S-REIT ETF, resistance is at 90 cents. The Lion-Phillip S-REIT ETF’s major resistance appears at 93 cents.
