Technically, the Canadian REIT scene is in pretty decent shape. The iShares REIT ETF (XRE-T) seems to be happily moving up in a nice uptrend. Its following my key trending rules of making higher highs and higher lows on the weekly chart. That, and its above its 200 day SMA. However, the sector is coming into an area of long time overhead resistance at around the mid $17.50-ish . Note that I opted NOT to use the cumulative dividend chart –this is a straight price chart. A dividend-inclusive chart changes the outlook to being through its technical resistance. Its price has not broken resistance. Higher dividend stocks should usually be approached with the non-dividend option if you use stockcharts.com.
Anyhow–Canadian REITS may be a good place to look if you are after a higher yielding security – but I am wary of the upside potential from here due to that overhead selling pressure potential.
The Dow REIT sector index that represents the US REITS has also been in an uptrend. However, it too is facing significant technical resistance at a level that has not been broken for some time. The chart below shows us that the DJR index was in a minor uptrend last year, but failed to significantly break through the mid 300’s level. The index is currently about to test its 2017 high of 360, and then 375. It will be interesting to see if it can successfully break either of those levels.
Canadian or US REIT’s?
For my money, I’d say both look ok, but I’d not be expecting much growth potential on either play.
Clip from Monday’s Bloomberg/BNN show with Keith Richards
Here is the full show from Monday, where I discussed my market outlook, and answered viewers questions on individual stocks.