Apartment Investment & Management Co. operates as a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties.
Take a look at the 1-year chart of Apartment (NYSE: AIV) below with my added notations:
Over the course of the past several weeks, AIV has commonly found support or resistance at the increments of $5 (blue). For example, $35 was resistance in March, and also support earlier this week. The $25 and $30 levels have been support, while $40 was a recent resistance. Identifying this tendency should help when it comes to identifying when to enter a trade on AIV.
The Tale of the Tape: AIV is currently trading between the $35 and the $40 levels. A long position could be entered at $35 or on a break above $40 with a stop placed below the level of entry. If AIV breaks below $35, or rallies up to $40, a short position could be entered instead.
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!
Christian Tharp, CMT