My last Bear Alert for this week is HR. This may be heading into a bounce but it has broken its upward trend. Like all the REITs I've discussed this week, and there are many more like it, it has high multiples:
Beyond that, they have a debt-to-equity greater than one, and the EPS while expect to rise this year, is expected to fall next year, and it still trades at a P/E multiple of over 50.
The analyst target price is now lower than the current trading price.
So let's take a look at the chart:
As you can see from here, the price has broken below the daily MA50 and has closed below it for the last 3 days. Now this changed in after hours trading yesterday with some sizable purchases:
There was more volume after hours than there was the rest of the day, which wasn't small either. This might be a short seller covering, or a bull going VERY long. The thing is, when I did some Fibonacci work on this I don't see the bottom happening until next Friday, and the overall market trends are likely to weigh on this.
I'm seeing a price range of $26.92 - $26.97 by February 19th. After that I expect to see a rally that but strong resistance at that Daily MA50, and certainly at the weekly MA10 (below) as it has broken its upward trend bottom.
Good luck with your own paper trades. I'll have to finish my special post on NIRP this weekend, but you can trust that it will be a worthwhile read.
Disclaimer: This blog is for informational purposes only. I may or may not have positions, long or short, in any stock or security mentioned anywhere on this site or elsewhere at any time. It is the sole responsibility of the reader to interpret the contents here, and to seek the advice of a qualified financial professional before engaging in any trade.
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