General Growth Properties
Real estate investment trusts (REITs) have been on fire in the last year and change, enjoying a combination of a rebound in real estate prices and the price benefits of huge yields in a zero-rate environment. Mall owner General Growth Properties (GGP - Get Report) is one example of a REIT that's set to move even higher in 2013 thanks to the technical setup that's been forming in shares for the past few months.
GGP is currently forming an ascending triangle pattern, a price setup that's formed by a horizontal resistance level above shares, and uptrending support to the downside. Essentially, as GGP bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above that resistance level. Complicating things a little is the fact that GGP's resistance level is actually a range between $20.50 and $21. While the 50-cent range obscures the buy signal here a bit, the trading implications are still the same.
If you're looking to buy the breakout in GGP, just fit the breakout level you use to your risk tolerance. More risk-hungry investors should be looking to enter closer to the bottom of the range at $20.50, while the risk-averse should use $21 as the buy signal for this stock. The earlier entry provides more potential upside, but a slightly higher chance of a fakeout. Either way you play it, keep a protective stop just under the 50-day moving average.