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.
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