Real Estate is the Ultimate Tease
- Posted by Greg Harmon
- on July 6th, 2012
Real Estate, as measured by the Real Estate iShares ETF, $IYR, has been threatening a breakout since back in March when we wrote Real Estate Finally Ready to Break Out. It was hovering at the neckline of a large Inverse Head and Shoulders pattern with a price objective of at least 105, as can be seen on the weekly chart below. In fact as far back as July 2011 it seemed ready to break higher. Since then the ETF has bounced around both sides of the neckline, never dropping enough to negate the pattern, and is moving higher near the October 2007 high. What is different now is that the 20 week Simple Moving Average (SMA) is rising with the price. It also has support from a rising Relative Strength Index (RSI) that has moved into bullish territory and a Moving Average Convergence Divergence indicator (MACD) that is crossing positive. Above that October 2007 peak there is one hurdle remaining from February 2007 before it is free and clear to run higher. The first price objective then is 92.80 followed by 105. Worth keeping an eye on. The 3 box reversal Point and Figure chart has a current price objective of 77.00 right now as well.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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