The largest cap equity in the real estate sector IYR, is American Tower Corp. (AMT).
We’re going to spend some time dissecting this equity but first, let’s look at the big picture (above).
The same chart is posted below having two areas highlighted with blue circles.
Zooming into the upper-right circled area (shown below). The circle has been removed to help provide clarity on the technical situation:
Next, we’re going to add a trading channel to the chart:
Now, we’ll zoom into the daily charts:
Drilling down even further on the daily:
From a fundamental standpoint, AMT has a P/E of 55, and is yielding an anemic 1.94% (as of 2/5/21, bigcharts).
That compares to a current TLT, yield of 1.55%
The last three earnings releases have each been downward surprises; averaging -6.6%, against expectations.
Getting back to the technical condition.
The second weekly chart had two areas circled. These are the only two places (in over fourteen-years of price action), where the 50-Week MA is pointed down at similar angles.
The first circle, AMT was rising into the declining MA as part of a long term bullish reversal.
The proposition at this juncture, based on fundamental and technical conditions, AMT is rising into a declining 50-Week MA as part of a long term reversal to the downside.
Price action is the final arbiter. Anything can happen.
The next earnings release for AMT is scheduled for February 25th (Yahoo Finance) so it’s not going to be a near term factor.
The expectation for the coming week; AMT continues its reversal and takes the IYR sector with it.
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
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