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REIT

Alexandria Real Estate (ARE) : Short signals (are they aligned yet?)

My MACD readings is a bit rusty. So, take it with a pinch of salt.

The following chart uses 2 indicators to determine a short entry.

1. 20 day MA

2. MACD histogram

2009may-alexandria-real-estate-inc-800x600

Some points to note:

1. ARE has been trading at a lower range. Look at the boxes drawn. It is still not clear if the new range is between $31 and $35.

2. Yesterday, closing provides a clearer picture that it is now being resisted by the 20day MA. In fact, if I recall, yesterday ARE was ‘up’ till the later hours of the day. Perhaps, a sign that the bulls are getting exhausted.

3. MACD. A possible MACD bearish cross. I also counted 4 consecutive green MACD histogram.  If a red histogram appears, that is my signal to short. (4green histogram followed by a 1 red histogram)

NOTE:

Reminder: My MACD readings are ‘rusty’. Perhaps, others can comment if my reading is right.