While doing my daily search for possible trade options i found that among my many short alerts had a common trait. 5/8 Short alerts were all REITs.
Now I'm not saying real estate is gonna crash or to prepare for another 2008 crisis however it appears that most ASX REITs are overvalued from a technical standpoint which opens the idea for a potential short.
These stocks will be displayed below along with the bearish indicators aswell
1. Growthpoint Properties Australia (ASX: GOZ)
Bearish Technical Analysis:
--> 2 Standard deviations from Mean (Mean Reversion)
--> 3 standard deviations from Linear regression
--> RSI overbought
--> MFI overbought
--> Bollinger bands overbought
--> Resistance at 0.764 level on Fibonacci retracement
--> Japanese Bearish Candle Dark Cloud Cover
2. Charter Hall Long Wale REIT (ASX:CLW)
Bearish Technical Analysis:
--> 2 standard deviations away on linear regression
--> Failure to break 0.764 level on Fibonacci retracement
--> No strong volume breaking ascending triangle to act as momentum
--> RSI slightly overvalued
Bullish Technical Analysis:
--> Support between $4.80-$4.83 (Ascending triangle line)
3. Charter Hall Retail REIT (ASX:CQR)
Bearish Technical Analysis:
--> 2 standard deviations away on linear regression
--> Resistance at Fibonacci level 0.618
--> 2 Standard deviations from mean (Mean reversion)
--> Resistance level at $3.98
Bullish Technical Analysis:
--> Support level at $3.84
5. National Storage REIT (ASX:NSR)
Bearish Technical Analysis:
--> 3 standard deviations away on linear regression
--> RSI overbought
--> 3 standard deviations away from mean (Mean reversion)
--> MFI overbought
--> Still overbought in Bollinger Bands
--> Resistance level at $2.17
Bullish Technical Analysis:
--> Support level at $3.13
Dexus, Goodman Group aswell as Cromwell property also have signs of being oversold however was not alerted by my scripts.
Overall i see a pretty solid consensus that a majority of the ASX REITS are overvalued and a possible drop can be ahead however as real estate stocks jump more reactively to fundamental announcements it is important to also address that aswell.
Now I'm not saying real estate is gonna crash or to prepare for another 2008 crisis however it appears that most ASX REITs are overvalued from a technical standpoint which opens the idea for a potential short.
These stocks will be displayed below along with the bearish indicators aswell
1. Growthpoint Properties Australia (ASX: GOZ)
Bearish Technical Analysis:
--> 2 Standard deviations from Mean (Mean Reversion)
--> 3 standard deviations from Linear regression
--> RSI overbought
--> MFI overbought
--> Bollinger bands overbought
--> Resistance at 0.764 level on Fibonacci retracement
--> Japanese Bearish Candle Dark Cloud Cover
2. Charter Hall Long Wale REIT (ASX:CLW)
Bearish Technical Analysis:
--> 2 standard deviations away on linear regression
--> Failure to break 0.764 level on Fibonacci retracement
--> No strong volume breaking ascending triangle to act as momentum
--> RSI slightly overvalued
Bullish Technical Analysis:
--> Support between $4.80-$4.83 (Ascending triangle line)
3. Charter Hall Retail REIT (ASX:CQR)
Bearish Technical Analysis:
--> 2 standard deviations away on linear regression
--> Resistance at Fibonacci level 0.618
--> 2 Standard deviations from mean (Mean reversion)
--> Resistance level at $3.98
Bullish Technical Analysis:
--> Support level at $3.84
5. National Storage REIT (ASX:NSR)
Bearish Technical Analysis:
--> 3 standard deviations away on linear regression
--> RSI overbought
--> 3 standard deviations away from mean (Mean reversion)
--> MFI overbought
--> Still overbought in Bollinger Bands
--> Resistance level at $2.17
Bullish Technical Analysis:
--> Support level at $3.13
Dexus, Goodman Group aswell as Cromwell property also have signs of being oversold however was not alerted by my scripts.
Overall i see a pretty solid consensus that a majority of the ASX REITS are overvalued and a possible drop can be ahead however as real estate stocks jump more reactively to fundamental announcements it is important to also address that aswell.