Retail Properties of America
Last up is Retail Properties of America ( RPAI), a $4 billion trust that owns and operates shopping centers. RPAI is another bearish setup right now -- shares are currently forming a descending triangle, the opposite of the bullish setup we looked at in EXR. Here's how to trade it.
The descending triangle is a price setup that's formed by horizontal support -- in this case at $14.25 -- and downtrending resistance. As shares get squeezed closer to that support level at $14.25, the probability is increasing that we'll see a breakdown below support. When that happens, it makes sense to sell (or short) shares. If you decide on the latter, it makes sense to keep a protective stop on the other side of the 50-day moving average -- it's acted as a decent proxy for resistance over the course of this setup.Don't be early on this trade. The broad market is still in a primary uptrend, and that makes any shorts counter-trend trades right now. RPAI doesn't become a high probability downside name until that excess demand at $14.25 gets absorbed by sellers. To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts