economy
This real estate stock is setting up for a move higher despite the rise in interest rates, charts show
Frank Cappelleri takes a look at the real estate sector.
TL;DR
- Manual chart analysis revealed attractive patterns in a meaningful number of real estate stocks.
- This is notable given the recent rise in the 10-year Treasury yield to near 4.7%.
- The observed price action may indicate investors discounting future events or finding value despite rising rates.
- Market technicians should prioritize price action to interpret market signals objectively.
- The 10-year yield's marginal net increase since late 2022 suggests potential for volatility and short-term pullbacks.
- Welltower is highlighted as a real estate stock attempting a breakout with an upside target near 239.
- 14 S&P 500 real estate stocks are trading within 3% of their 20-day highs, indicating recent strength.
- The metric of 20-day highs is considered more telling than 52-week highs for identifying recent strength.