Will be monitoring a possible false break in Growthpoint

Local property, in general, has been struggling for the past 2 years, with good reasons. I just finished my report (will publish here soon) on the sector and although many of these reasons still persist, there are some reasons to slowly but surely put the sector on your personal "BUYING-RADAR". My personal preference still lies with the biggest counter in the sector.

Looking closer at Growthpoint (GRT), one can clearly see how the share price broke through one of it's strongest support levels (over a period of 6 years) recently. I do however feel that GRT found itself in the perfect storm and should be monitored closely.

Price currently in EXTREME OVERSOLD according to its 14-day RSI.

Very important stat to mention is the fact that for the first time since 2004, GRT's Historic Dividend Yield (10.6%) is trading above the South African Prime Rate (9.75%). Yes, I know with the tough economic environment locally, rentals could still remain under pressure for quite some time. So let's say we see a decrease of 20%. Even if this happens, which at this stage remain highly unlikely, we still have GRT trading close to 2.5% higher (yield) compared to money market.

If I was a short-term trader (which I'm not), I would use the 21-day Moving Average (EMA) at R21.13 as my confirmation and entry-point. Top of the diagonal resistance would be my first target (R22.00 - R22.20). Over longer-term I do believe GRT offer value.