To The Moon

Technical Analysis: Breaking Down the Chart The chart for $Frasers L&C Tr(BUOU.SI)$ shows a textbook recovery. After a period of consolidation in early 2025, the stock has entered a well-defined Uptrend Channel that signals strong institutional interest.

The Power of "Support & Resistance" One of the most bullish signals on this chart is the transition of $0.985 from a stubborn resistance level into a solid support floor. You can see where the price struggled previously (highlighted by the blue circles), but once it broke above that ceiling, the stock used it as a "trampoline" to jump higher. This confirms that buyers are now stepping in at higher price points, a classic sign of a healthy uptrend.

Moving Average Alignment The moving averages (MAs) are currently in a "Perfect Order" configuration:

• The 20-day MA ($1.014): Providing immediate short-term support.

• The 50-day MA ($0.985): Aligned perfectly with the horizontal support level.

• The 200-day MA ($0.910): Sloping upward, indicating that the long-term trend has officially turned bullish for 2026.

The Tailwinds: Why It Could Go Higher The primary catalyst for FLCT in 2026 is the global interest rate environment. As SORA rates stabilize and trend downward, the cost of debt for high-quality REITs like FLCT drops, directly boosting their distributable income.

Furthermore, the Logistics and Industrial sector continues to be the "crown jewel" of the portfolio. With near-full occupancy in its European and UK assets, the trust is benefiting from positive rental reversions—essentially charging more for the same space as demand for warehouse and distribution hubs remains high. At a forward yield of approximately 5.7%, FLCT remains a go-to for income-seeking investors in a low-yield world.

The Headwinds: Potential Speed Bumps No investment is without risk. While the logistics side is thriving, the Australian office market remains a point of caution. Higher vacancy rates in specific cities like Perth continue to be a slight drag on the overall portfolio performance.

Additionally, as a REIT with significant international exposure, currency volatility remains a factor. Fluctuations in the Australian Dollar (AUD) and Euro (EUR) against the Singapore Dollar (SGD) can impact the final dividend payout. Finally, keep an eye on Eurozone GDP; while stable, any significant slowdown in Europe could temper the pace of future rent hikes.

Future Movement Prediction As of January 20, 2026, the stock is trading at $1.040, hovering near the upper boundary of its current channel.

• Short-Term Outlook: Expect some minor consolidation. It would be natural for the price to pull back slightly toward the $1.01 – $1.02 range to "recharge" before the next leg up. This would be a healthy development rather than a cause for concern.

• Medium-Term Target: If the current uptrend channel remains intact, we expect FLCT to challenge the $1.10 psychological resistance level by the end of the second quarter. The combination of falling interest costs and strong logistics demand makes this a "buy on dips" candidate for 2026.

Bottom Line: FLCT has successfully pivoted from a recovery play to a momentum play. With the technical and macros finally aligning, the path of least resistance appears to be upward.

Kenny Loh is a distinguished MAS Private Wealth Advisor with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

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