Real Estate in a bullish trend
As we can see in the chart, VNQ’s – Vanguard Real Estate ETF – highs and lows form an ascending triangle – the blue lines in the chart. In theory at least, price should break above this continuation pattern and an uptrend should start again.
Following the last low at the lower side of the triangle and the lower Bollinger Band, price moved above its 10- 20- and 50-day exponential moving averages and along the upper Bollinger Band.
This bullish pattern was somewhat weakened by the huge bearish candlestick that brought price below its 10-day exponential moving average and the upper side of the ascending triangle.
We will wait to see the following sessions’ price action to determine whether the breakout was valid.
Apart from the above, MACD is currently moving in a positive territory and above its signal line.
Just as important, VNQ’s Relative Strength is moving strongly up, well above its 20-day exponential moving average since the beginning of August.