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Is it Time to Get Back Into Real Estate Equities?

Potential Rebound
It looks like we are seeing a breakout on the very short timeframes. The price of VNQ has climbed above the resistance of a price channel that has held down the price action for several weeks.
Are we about to see a rebound? Or will we see more consolidation before a rebound? If the price falls back down into the price channel and makes new lows, then the rebound prospects will look a lot slimmer at that point.
Is it Time to Get Back Into Real Estate Equities?
Fibonacci Support
The potential rebound could correspond almost perfectly with the strong support of the 61% Fibonacci level of the current rally that began last year.
Is it Time to Get Back Into Real Estate Equities?
Bullish Subindicators
RSI and MACD are clearly in bullish territory on the weekly candles. This is always a good sign.
Is it Time to Get Back Into Real Estate Equities?
Potential Trade Opportunity
We might have a rebound taking place. But it is still too early to call. We need to see a little more upside before we can be fully confident in a rebound. If you would want to take a chance and get in early on this potential rebound, then I would definitely enter a stop loss near the previous lows to mitigate risk.
For confirmation of a rebound, I would need to see the price climb above the closest resistance levels to the current price. Once I see that, then I would assume that the price is heading up to the previous highs and the next resistance level on the way up. This would be around the 89.40 - 89.50 price range.
I have illustrated an example of how this might look in the chart directly below.
Is it Time to Get Back Into Real Estate Equities?
Conclusion
The charts for the real estate sector look like there might be a good trade in the mix. Personally, I wouldn't mind entering into a swing trade here. I would definitely use a stop loss just in case the price action decides to consolidate a little more or make a bottoming pattern before any official rebound.
The real estate market is in an awkward position. Commercial real estate has shown signs of trouble lately. While mortgage data and homebuilder data have been showing strong signs of improvement. Fundamentally, things look a little sketchy for the real estate sector. But the future might look brighter.
Perhaps the expected rate cuts by the Fed will have a positive impact on the industry. Maybe the lower borrowing costs could spur increased demand for real estate in general.
Good Luck Trading
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.
Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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