You know the market is brutal when REITs are starting to look good. Here’s Scott’s thoughts on $AMH – December 13, 2021
AMH
This is Scott with your Chart of the Day. You know it’s pretty bad in the market when I go to REITs as a sector that is showing strength in the market right now. This is one of them that I saw today that is looking okay.
Now typically, anytime REITs are relatively strong it is because traders and investors are kind of getting away from some of the more high-beta stocks, some of more high-risk stocks, and are looking for a little bit of a flight to safety.
When REITs start coming up on my scans as stocks that are setting up like this one is ( NYSE: AMH ) because it is above all of the major moving averages and in a well-defined uptrend. When I see stocks like this start to come up I tend to just continue to be a little more protective in a market like this. So just take that for what it’s worth.
Chart wise, here is what we have on American Homes 4 Rent ( NYSE: AMH ). We have a stock in a well-defined uptrend, above all of the major moving averages, and coming close to a previous level of resistance, right around that 42.65 zone. We bumped up against there, pulled back to the 50-day, retested it, failed, rallied back, and again here we are right under that 42.65 level.
What this stock needs to do, in my opinion, is break above and hold above that 42.65 level and do it on volume. So if you are looking for a fight to safety consider American Homes 4 Rent ( NYSE: AMH ). You will want to watch for a strong move above 42.65 on volume. And I would probably want to put my stop loss right around that 8-day exponential period moving average. A close below the 8-day, chances are you would want to take that trade-off.
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