Is It Time To Short This Housing Stock?
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Anywhere Real Estate, Inc. engages in the provision of residential real estate services, which focuses on empowering independent sales agents. It operates through the following segments: Realogy Franchise Group, Realogy Brokerage Group, Realogy Title Group, and Corporate and Other.
Take a look at the 1-year chart of Anywhere (NYSE: HOUS) below with the added notations:
After failing to hold its $13 support back in April, HOUS has now stalled at the now $13 resistance on two separate occasions (blue). The stock has pulled back once again, but a break through $13 could lead to much higher prices for HOUS.
The Tale of the Tape: HOUS has an important level of resistance at $13. A long trade could be entered on a break through that level, with a stop placed below it. However, if you are bearish on the stock, a short trade could be made on any rallies up to the $13 area.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Good luck!
Christian Tharp, CMT
