Real Estate is Looking Good?

Residential Real Estate where I live and throughout much of the country has had better days. We all know that. It is certainly not a screaming buy and may decline further. But one measure of the Real Estate space, the Real Estate iShares ETF, $IYR, is flashing a short term buy with a possible long term confirmation not far off. Let’s take a look.

There are so many good things about this chart in the short run. First there is the bull flag forming the last three weeks with a target on a Measured Move to 62.50, near the long term resistance. A move there would complete a Cup and Handle formation. Next The Relative Strength Index (RSI) is making a new high and moving higher towards bullish territory. Third the Moving Average Convergence Divergence (MACD) indicator is crossed positive and increasing supporting more upside. Next, the Inverse Head and Shoulders breakout noted in green retested the neckline and held. The target at 92.80 comes into the picture on a move over 62.33. There is another Inverse Head and Shoulders formation that will form on a move through the blue trend line resistance with a price target of over 105. It is the next few weeks that will determine how far this can run. Dabble now but keep watching 58.20 and 62.50 for the chance to be part of the fireworks.

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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.

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