Quick Charting Key Levels for IYR Real Estate ETF

Jun 18, 2013: 11:21 AM CST

After a stellar reversal lower from a long trending phase, Real Estate (shown using the popular ETF symbol IYR) faces a key challenge of “make or break” overhead resistance at a key level that provides our current short-term game planning strategies.

Let’s take a look at the chart, the level, a Fibonacci Grid, and note the bull/bear pivot point to watch:

The Daily Chart above shows a pure price perspective of the rising trend that ended with a sharp sell-off swing from $76 to $65 over a few trading sessions.

The confluence downside target held just above $65.00 per share (technically the $65.50 region) which reflects a dual Fibonacci Support Cluster as highlighted.

This is also a ‘polarity’ or prior resistance area, making $65 the easy-to-remember reference level for traders.

Quite simply, a swing down here and breakthrough under $65 suggests that the fund would likely continue a bearish pathway toward $62 per share then the next lower price and Fibonacci Cluster near $59 per share.

Before we add indicators to the chart, we’ll focus on one more price area and it’s the current impulse swing into $70 which is the underside of the 38.2% Fibonacci Retracement as drawn.

The Daily Chart – with indicators – also shows why $70 is the important focal level for the moment:

We see another polarity or prior price resistance cluster into $69 per share and we also note the overlap of the falling 20 day EMA (exponential moving average) into $69.25 along with the falling 50 day EMA just above $70 per share at $70.34.

The main idea is that the current area into $69 and $70 will be critically important for positioning and trading as price either breaks bullishly above $70 to continue the uptrend, or else stalls into the confluence resistance here and trades lower back toward the $65 critical confluence cluster.

A future breakdown under $65 continues opens the fund for a downside price pathway toward $61 again.

For now, we’ll note $69 to $70 as the “neutral” zone; a break above $70 as a “bullish breakout” development (note the green highlight); and finally a stall or movement lower from $69 as the “bearish pathway” for price.

Join fellow members to receive daily commentary and detailed analysis each evening by joining our membership services for daily or weekly commentary, education (free education section), and timely analysis.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Corey’s new book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

Comments Off on Quick Charting Key Levels for IYR Real Estate ETF

Comments are closed.