Last week, patterns reflected that REIT ETF (IYR) and Homebuilder (XHB) were both facing key resistance. (see post here)
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Above is an update to the IYR chart, which reflects that IYR is still facing key resistance. Price level (1) was very important back in 2008, once it gave way IYR fell very sharply!
Game Plan…Am going to buy IYR with a 3% stop. Next fib resistance comes into play around 10% higher. I am going to watch this one very close. Should support give way, will not only close the long position, will be looking to score on defense by owning SRS.
Stemphos… I like IYR with a tight stop here. XHB is having a rough day today. If these two fail, IYR & XHB I am ready to jump on the inverse side with SRS.
Hi Chris,
With IYR now at 58.23, would you recommend buying tomorrow or should we wait to see if resistance is now support?
Thanks,
stemphos