IYR Testing Critical Levels

The IYR  (Dow Jones U.S. Real Estate Index etf) is testing critical levels, if one is aggressive and believes in shorting a decent risk reward opportunity has presented itself.  As you can see from the daily chart below the IYR is testing the $63.50-$64 level which has acted as support since the end of June until it finally broke that level on 11/8/2012.  On the weekly chart it is testing a more significant level which is the underside of the ascending trendline that started in March 2009.  The opportunity lies in a short trade against a closing move above the declining 50 day moving average ($64.25) and the 1st target will be a retest of the recent low $60.84.  $DRV is 3x IYR inverse ETF.  Currently 95% of the stocks within the IYR are trading above their 10 day moving average, and its up 5 out of the last 6 days.

WEEKLY CHART

If this idea makes sense to you, then play at your own risk, and know your risk.  Consult your broker/advisor/etc or us at Zor Capital.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.


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