2020-06-05 – Inverse Head and Shoulders Pattern on TSX Equal Weight Real Estate
The Real Estate Sector inside the TSX has been one of the worst performing sectors in 2020. However, the charts are indicating the stability in the sector may be on the way. The chart below of the BMO Equal Weight Real Estate ETF (ZRE-TC) shows an Inverse Head and Shoulders Pattern. This is a bullish continuation pattern.
As the depth of the right shoulder is much shallower than the depth of the left shoulder, this illustrates investor confidence in the future stability of the sector. With a dividend yield of 5.37%, ZRE-TC may be an attractive investment for value investors.
As of the close on June 4, 2020, ZRE-TC has broken the neckline of this chart pattern whereby indicating ZRE-TC is progressing to it’s chart pattern price target of 22.33. Investors looking for further confirmation of this chart pattern may look for a close above 20.26 (overhead price resistance). Should price action close back below the neckline, this would indicate that the chart pattern has failed and price would be looking to retrace back to the June 2nd low at a minimum.
Regards,
Tim Koen, P.Eng
President
Riverside Analytics Inc
tim.koen@riversideanalyticsinc.com
www.riversideanalyticsinc.com
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