Shares of Public Storage(PSA) - Get Report are moving well Monday morning.  The giant real estate investment trust is one of the top-10 gainers in the S&P 500, with a more than 2% advance. This impressive move has pushed PSA to within easy striking distance of its 2017 highs. A clear break through this heavy resistance area could spark a powerful new rally leg for this B+rated stock.

PSA left behind what now is shaping up as a major double bottom, in the fourth quarter of last year. The stock rebounded nicely off the $200.00 area in December, but since the start of this year, PSA has been stuck in a narrowing range. A declining 200-day moving average has been providing heavy overhead pressure during this phase. Despite 200 day's weight, the stock still managed to put in higher monthly lows in March and again this month. This solid basing action, along with a scooping cluster of moving averages, is setting up the stock for a fresh rally leg. 

In the near term, PSA investors should take a much more positive view of the stock. PSA should be considered a low-risk buy on weakness. Key support is now in place between $228.00 and $225.00. This zone includes the mid March highs as well as last week's peak. On the upside, PSA bulls should keep a close eye on the $232.00 area. Once past this area, the stock will have cleared the February peak and will have room to run. On the downside, a close back below $223.00 would violate last week's low, signaling more sideways action is ahead.

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