Okay, I have a little time this morning while the whole family is out so I thought I'd analyze a stock we haven't looked at in a while: AVB
AVB (AvalonBay Communities, Inc.) is part of the housing market as a real estate investment trust (REIT). I'm not sure what implications that may have on the technicals -- any feedback? I could see the stock stalling and waiting for the housing market to finish its adjustment. I could also see it gaining bullish momentum as more people choose apartment lives for a while in order to build higher credit scores and down payments to purchase homes. Finally, it could be confused like me and trade sideways for a while. I think the latter is the most plausible. That doesn't mean, however, that we can't be profitable with it. Read on...
AVB appears to be setting up a channel pattern fostered by strong support at 95 and strong resistance at 106. It has double tops on 3/24 and 4/7 and is setting up for subsequent double bottoms on 3/28 and 4/11(today).
(FYI, click on the chart for a larger and clearer version)
In fact, a little broader view shows us that AVB is very comfortable trading in $10 channels. Unfortunately I can't draw boxes to highlight these trading channels - so you can discover that yourself ;-) (I've drawn blue and red channels and one Purple line to assist)
Now, for an interesting look at the moving averages - first study the chart below:
What is most interesting to me is that the 100 & 200 day MA's (the bottom and top lines) are working as support and resistance respectively. What is also interesting is how the price tests each exponential average (10, 20 & 50) on the way down, finally resting on the 100 day both times. It is important to note however, that neither the 100 or 200 has yet to turn up, both are still angled down slightly. This is an awful lot of pressure fora stock in the housing market to overcome! I think we'll see some bounces between the 100 and 200 -- effectively trading sideways.
With that said, a $10 swing is not to shabby! and if today continues bullish (contrary to the rest of the market) I'll likely jump in with a contract or two and ride it back up to the 200 SMA.
In fact, a little broader view shows us that AVB is very comfortable trading in $10 channels. Unfortunately I can't draw boxes to highlight these trading channels - so you can discover that yourself ;-) (I've drawn blue and red channels and one Purple line to assist)
Now, for an interesting look at the moving averages - first study the chart below:
What is most interesting to me is that the 100 & 200 day MA's (the bottom and top lines) are working as support and resistance respectively. What is also interesting is how the price tests each exponential average (10, 20 & 50) on the way down, finally resting on the 100 day both times. It is important to note however, that neither the 100 or 200 has yet to turn up, both are still angled down slightly. This is an awful lot of pressure fora stock in the housing market to overcome! I think we'll see some bounces between the 100 and 200 -- effectively trading sideways.
With that said, a $10 swing is not to shabby! and if today continues bullish (contrary to the rest of the market) I'll likely jump in with a contract or two and ride it back up to the 200 SMA.
No comments:
Post a Comment