We don’t often talk about trades of REITs, but if there is a trade to be had, we won’t ignore the set-up, as long as it’s a good one. For our REIT in focus today, we are looking at the American Tower REIT (AMT), which had offered us one of our clear-cut set-ups we like so much.

Currently, the stock is sitting at a pretty major support level where we have seen a bounce 4-5 times already. However, what can happen when we pound the floor repeatedly? Eventually, we may break through. This could very well be the case with this REIT as price once again heads to this level, and in fact, is currently sitting right at it.

A break of this level would open us up for a put play, but to be sure, we would ideally want to see a close below this level also. This would give us a little more added confirmation that we are in fact headed lower. A break a close below this support level could send us spiraling toward our recent low of 172.

But, we do have another way to look at this chart as we acknowledge that we never know what the market might do and we don’t want to become too biased or married to one trade over another.

If we get some buyers stepping in at support in a way where we can rise and break through that trend line, which lines up near 190, we could look for a break and retest of 190 for a move higher or a long play. This is another trade to keep on watch as we work our way through this shortened week.

If the market can slide a bit more, this would favor the downside on this particular trade. Be sure to watch my video below so you can mark all these levels out on your chart and map out the market. Without a roadmap, we are basically trading blind.

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Good Luck With Your Trading!

Christian Tharp, CMT