Chart Review – REA Group (REA)

The News controlled REA Group is the digital  real-estate advertising stock realestate.com which has been hugely profitable for investors since being floated in 1999 ($1).

On Friday (10/02/17) CEO Tracey Fellows released the 1H results showing a 6% lift in NPAT to $110 million. The market price however fell 1.27% to $53.47.

Chart 1 is a monthly candlestick chart extending back to 1999, showing the share price peaking at $65 after an 18 year long meteoric rise. Note the strong support-resistance level at $50. If the share-price falls below this it would complete a head and neck pattern which might herald further declines.

rea-mnth-feb-17

Chart 2 is a 12 month daily candlestick chart. Since July 2016 the share-price has been trending lower. The recent upwards bounce in December 2016 ended the downwards trend-line but trend analysis does not yet confirm the emergence of a trend reversal. For this to happen, the share-price must exceed the previous high at $57.82.

REA Feb 17.png

Disclaimer:

Readers should not base their investment decisions on technical analysis considerations alone, and should seek the advice of their stockbroker or qualified financial adviser before investing.

The writer does not own shares in the REA Group.

 

 

 



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