The iShares Residential and Multisector Real Estate ETF (REZ) seeks to track the investment results of an index composed of U.S. residential, healthcare and self-storage real estate equities. This ETF looks ready to turn higher. Let's check.
In this daily bar chart of the REZ, below, I can see a base pattern playing out from October. The trading volume has been on the light side but buyers have been showing up in the $68 area. Prices are now trading above the rising 50-day moving average line and the bottoming 200-day line.
The On-Balance-Volume (OBV) shows improvement in June and that could continue. The Moving Average Convergence Divergence (MACD) oscillator has been performing better the past three months.
In this weekly Japanese candlestick chart of REZ, below, I see an improving technical picture. Prices have moved above the 40-week moving average line. The $70-$65 area should now act as support. There are lower shadows in March and May that have caught my eye and suggest the path of least resistance is up.
The weekly OBV line shows strength from the beginning of the year. The MACD oscillator has been improving for months and is just slightly below the zero line.
In this daily Point and Figure chart of REZ, below, I can see an upside price target in the $85 area.
In this second Point and Figure chart of REZ, below, I used weekly price data with a five box reversal filter. Here the software projects a price target in the $96 area.
Bottom line strategy: Traders could go long REZ at current levels. Traders should use limit orders as REZ does not trade a lot on most days. Risk to $68 for now. The $85 area is my first price target.
