Finally the uptrend line that supported the move has been breached indicating that the prudent investor might want to move to the sidelines.
The momentum indicators are not suggesting a move to the upside so it would be best to be patient and wait for signals that AW.UN is going to move higher.
With the uptrend line broken, a new downtrend established, overhead resistance along the 50 day moving average, and thinning volume I don’t think its a great time to get in.
At this point there is no indicator signalling a rise in the price of the units . Why own what is essentially an equity if it doesn’t seem to have an upside?
Without a reason to hold in anticipation of a richer payout of distributions or appreciation of the price of the units I think that its time to look for an exit.
Tough times no doubt and given the seasonal nature of the business with sales strength in the May to August period I think you would have to be cautious at the best of times.
Hi Lou, Do you have any comment on Enervest Diversified Income Fund? I bought it in 2001 and it has performed well for me in terms of distributions, but it has cut its distribution, its share price has fallen, and management has changed. I’m wondering if it’s worth holding onto it to see if [...]
