Real Estate … Channels Lower

Stay In The Lane

Real estate’s IYR, is trading in a channel that’s declining at around -94%, annualized.

The channel was identified and first presented, in this post.

Let’s take a look at how things are going thus far.

Real Estate IYR, Weekly Chart

The chart below, is a close-in view of current action.

The black arrows are ‘hits’ on the channel lines, providing confirmation of its existence.

From the lower-most channel line hit on the left side (the ‘demand’ side) to the first channel hit on the right side (the ‘supply’ side) is a Fibonacci 13-Weeks; adding more confirmation to the channel’s validity.

The next chart pulls out and extends the channel to show the potential of the move.

The ‘Damand’ Location identifies the point at which price action would need to decline (at this juncture) to contact significant demand if this channel is in-effect.

That is, if the channel has been identified properly. If so, it’s a long … long way down.

Summary

Currently maintaining short with trade DRV-22-02 (not advice, not a recommendation).

The stop location has been moved to DRV 37.80 and is most likely going to be moved higher depending on the close of the day.

Stay Tuned

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.

The Danger Point®, trade mark: No. 6,505,279

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