The Real Estate Sector is flush with stocks either breaking out to new all-time highs or pushing to get there. I’m taking a closer look here at $CBRE, a commercial real estate services and investment firm. The stock has rallied hard after a double bottom in October and December of last year, broken out to new all-time highs, and is now retesting the $50 level.
Most technicians, as I have explained here, would initiate the Fibonacci retracement levels at the primary high (represented by the blue horizontal line). Using that line as the measure, CBRE has flip-flopped around the $50 level as it looks to build a base.
I would argue that the secondary pivot high of $49 is more important in this case, as the Fib ratios appear to be honoring that level. Using $49 as the key level, the chart depicts a breakout and firm retest, with a minor false breakdown prior to this recent push. I am inclined to believe that the stock wants to push higher from here.
The RSI displays some bullish momentum characteristics, but also a negative divergence that is a little concerning and important to note in the near term.
Charts made with Optuma Software