$CBRE Testing Support of All-Time Highs; Headed to $56?

CBRE

Real Estate Sector Strong Across the Board

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

About the author

I am the founder of fibonacci.com and an avid trader. I am also the co-founder of Texas Precious Metals, a top US precious metals company. In 2006 I was a contestant on The Apprentice with future president, Donald Trump. I live in Coeur D'Alene, Idaho, with my wife and five children, where I spend my time hiking, charting, and changing diapers.

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