Sagar Nandi
Real estate sector is weak and here is a stock to avoid buying and you may look for a low-risk shorting opportunity.


How I found it?

I saw Real Estate sector is week using CUE Edge. Then I filtered for all the stocks in this sector that are overvalued and has negative earnings growth, using CUE Edge. Finally, checked for possible shorting signal in CUE Global or CUE Elite technical charts. The steps took only a few minutes. And I was ready with a complete analysis of the sector/industry/peer analysis and technical analysis. I also checked out the real estate ETF using CUE technical charts.

Real estate ETF is weak.

1) Weekly had bearish Headwind at the same price level that had lead to a price drop.
2) Price reversing from weekly Memory resistance trendline.
3) Daily hit Watermark resistance and creating a false upside breakout.
4) daily has a bearish Headwind possible reversal signal.
5) Price is displaying Bear Release after being Stretched (overbought) for a long time.
6) Price is at Extreme (Pendulum) HIgh.

IYR chart 2019-02-01_15-23-41.jpg 

AVB is showing weakness at the top.

7) Weekly came to Memory and Watermark resistance and pulled down this week.
8) Daily created a false upside breakout at Watermark resistance and displayed a bear Release signal.
9) Bear release signal in the band came after long bullish Stretch (the stock was overbought for a long time).
10) Today it is creating a Reversal at Extreme Price (Pendulum) High.

AVB chart 2019-02-01_15-25-35.jpg 
AVB's industry and sector both are weak.

11) Retail REITs is weak in score over 1D and 2D periods.
12) It is also showing deceleration (Pace is magenta) over 1D and 2D periods.

AVB Edge 2019-02-01_15-42-56.jpg 
AVB has weak fundamentals.

13) AVB is overvalued.
14) Its last annual earnings growth is negative.
15) Last quarter earnings growth is also negative.
16) It has earnings due on 4th Feb. So, it is not safe to short the stock right now.

AVB chart 2019-02-01_15-25-35.jpg 

Sagar Nandi
The snapshots in the above post were taken ~3:30 PM EST, about half an hour before the market close.

Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

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