Is Acadia Realty Trust a Long-Term Buy and Hold?

Analyzing a REIT

New Highs 1

Acadia Realty Trust is a real estate investment trust that focuses on the acquisition of shopping centers and mixed-use properties with retail components.

From a technical point of view, on a daily chart, Acadia's stock price recently broke to the upside of a falling wedge pattern and has extremely bullish momentum. Price has gapped up twice this week, making a higher high everyday. The 20-day moving average has just crossed above the 50-day moving average. The RSI has been rising on top of a bullish trend line and is over 70. Since price does not often go straight up, price will mostly likely pull back before regaining momentum and accelerating towards the $20.00 resistance level. Once price reaches the $20.00 level it will probably be a slower grind aimed at the $24.00 resistance level. If price cannot hold above the $13.00 level, then price may retrace to $10.00 support.      

Source: GAIN Capital, TradingView 

Looking at a monthly chart, we can see that price may have bottomed around the $10.00 level given the trend line. In 2009 price bottomed a little lower than $10.00 after confirming a hammer reversal candle just before a bullish engulfing candle started a new up trend. Looking at today's price movement we can see that something very similar may be occurring, which is why price may pull back slightly before continuing upwards.    

Source: GAIN Capital, TradingView

More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account