tad more downside expected here - should bottom around $100~ @ centreline or next would be bottom of channel - break of channel to the upside would confirm the correction is over.
Key Technicals - High probability trade here with the REA chart showing a Cup & handle pattern. Looking to buy on breakout (top of cup) with above average volume or on the breakout retest as resistance becomes support.
Key Fundamentals - Governments likely make sure housing recovery keeps on keeping on.
Text me if you have any questions/comments for me.
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REA
- Previous analysis was done on 9 Sep - Suggested waiting for successful breakout of 170 resistance levels
- Since then, the stock has gone up 9% and broken through the counter-trendline (purple dotted line)
- 170 levels has been a resistance since June 2021 (blue dotted line)
- A successful breakout...
REA Group (A$164.48) - 'online real estate advertising'.
New 3 1/2 month highs; well-positioned (not overextended) versus a gradually rising 200-day SMA.
Positive momentum in the Australian residential property market, showing strong signs of recovery.
Volume divergence indicating (high probabilty) that we may have a cheaper REA share price soon. I'm eyeing the high 120's to low/mid 135's as support and a potential entry.
REA Technicals = high probability - I'm looking to enter on the ascending triangle breakout. REA Fundamentals = lower probability - major cv19 head winds are incoming, but, I'm thinking the market takes an educated punt that any further real estate weakness will be meet with larger incentives/stimulus. This will likely lead to a bullish REA share price.
The Cup and handle pattern has been pretty reliable with REA over the years and it looks like another bullish high probabilty opportunity is forming again. Conservative entry would be a bullish candle breakout above the top of cup or if you want to get in on the back of REA'S bullish fundamentals, todays price of approx $103 looks ideal. Ideally S/L approx $98....
I didn't realise that REA operated across as many countries with as many portals as they do. Well known to Australians for the RealEstate.com.au portal they also have similar sites across Europe and Asia. They have been having a great run so far this year so could be worth a watch.
REA Group Limited advertises property and property-related services on Websites...
200 EMA has acted as major support for the last 18 + months. The 200 EMA finally gets broken late 2018. IMO this was due to a sell off of high P/E stocks and banking royal commission commentary.The 200 EMA was looking to break back through just before CEO steps down. This resulted in a retracemet and a range bound channel formation. Conclusion: High probability...
