Company: Invitation Homes Inc. Ticker: INVH Exchange: NYSE Sector: Real Estate
Introduction:
Today's technical analysis focuses on Invitation Homes Inc. (INVH), a key player in the Real Estate sector, listed on the NYSE. The daily chart presents an unfolding Rectangle pattern, indicating a potential breakout scenario for bullish investors.
Rectangle Pattern:
The Rectangle pattern is typically observed during periods of market consolidation and can signify either a bullish or bearish reversal or trend continuation, depending on the direction and place of the breakout. It's characterized by a trading range where the price oscillates between a defined support and resistance level.
Analysis:
Earlier, Invitation Homes was experiencing a distinct downward trend, as represented by the blue diagonal resistance line. However, the trend appears to be shifting, with the price now consolidating within a Rectangle pattern that has been forming for the past 238 days. It acts as a reversal pattern.
Recently, the price closed not only above the 200 EMA but also above the rectangle's upper boundary at 34.15, so we could enter this trade directly. We would ideally like to see the price break above the diagonal resistance line.
Assuming the breakout is valid, the price target is projected at 39.73, indicating a potential upside of approximately 16.34%.
Conclusion:
Invitation Homes' daily chart suggests a promising setup in the form of a Rectangle breakout, implying a potential bullish reversal. This configuration could provide a favorable long trading opportunity.
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Best regards,
Karim Subhieh
Disclaimer: This analysis is not financial advice and is intended for educational purposes only. Always conduct your own research and consult with a financial advisor before making investment decisions..
Looks like you were right about the direction. The technicals afterwards was very messy however. Stop-loss placement would have been an issue with the two sided price action. If you invested, it would have been fine I guess.
KarimSubhieh
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@kosai19, that depends on how tight your stop loss protection is, but in the worst case scenario, you could have gotten back in. I am curious to see what the coming weeks will look like for this trade.