Chart of the Day - Wednesday, September 4, 2024

Patrick Dunuwila
September 4, 2024

Chart of the Day


🏆 Today’s Chart of the Day was shared by @F4DE2BLCK.
 

  • Real Estate has been the strongest sector over the past three months but the weakest over the past three years. 
     
  • Falling interest rates have helped the sector recently. The iShares U.S. Real Estate ETF ($IYR) rose to a two-year high today, while the 10-year yield fell to a 52-week low.  
     
  • $IYR is testing potential resistance at $100, representing the 61.8% Fibonacci retracement of the bear market drawdown. After a constructive leg higher, this is a natural place for $IYR to correct or consolidate its recent gains. On the other hand, a breakout would open the door to all-time highs. 
     

Takeaway: Real Estate ($IYR) has made an impressive comeback in Q3, but $IYR has reached potential resistance at $100. The sector is building the right side of a base, but this would be a logical place for a reset. 

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