DDR Corp (NYSE: DDR)

DDR Corp. operates as a real estate investment trust (REIT) in the United States. The company engages in acquiring, developing, redeveloping, owning, leasing, and managing shopping centers, mini-malls, and lifestyle centers. As of February 5, 2007, it owned or managed approximately 461 shopping centers and 7 business centers, as well as 1,170 acres of undeveloped land. The company qualifies as a REIT for federal income tax purposes. As a REIT, the company would not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income to its shareholders. DDR Corp. was founded in 1965 and is headquartered in Beachwood, Ohio.

To review DDR’s stock, please take a look at the 1-year chart of DDR (DDR corporation) below with my added notations:

1-year chart of DDR (DDR corporation)

DDR has created a couple of important price levels to watch. First, DDR has formed a clear resistance at $15 (navy), which would also be a 52-week high breakout if the stock could manage to break above it. In addition, the stock is climbing a short term, up-trending support level (blue) over the last (2) months. These two levels combined have DDR stuck within a common chart pattern known as an Ascending Triangle. Eventually, the stock will have to break one of those two levels.

The Tale of the Tape: DDR has an up trending support and a 52-week resistance level to watch. A long trade could be made on a breakout above the $15 resistance. A break below the up trending support could be an opportunity to enter a short trade.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT