IYR: Real Estate Breaks Down from Bear Flag, sees 64.50 next

31 Jul 2013

Off its rejection at 2007's all-time highs at Andrews Pitchfork median line resistance near 75.50, IYR has broken down aggressively. After breaking below the lower APF reaction line, IYR declined to ~62.50, finding support at the APF's lower Hagopian line (dotted). The subsequent bounce has installed a rising channel/flag as a return move to the lower reaction line. The decline last week and this from that level, near 70, resulting in a downside break from the flag. The next support level of note comes in at confluence of trend line/Hagopian line support near 64.50.