UK Property REITS are on the move - targeting 62% retracementUK Property REITS including Derwent (DLN) have today closed above their 38% retracement levels following brexit.
Having been long DLN from 2400 on 7th July, this provides a bullish signal indicating that resistance has been successfully broken (following a week's worth of testing) and that price should rally towards 3019 in the next few weeks.
Should we see a reversal and two consecutive daily (or one weekly) close below 2717, then this hypothesis would be invalidated and REITS such as Derwent with similar pivots could be considered as shorts (targeting a new swing low having retraced the entire move).
Long at 2750 with a target of 3017 and stop (on close) at 2625, should provide a 2:1 payoff over the next month
(Suggested levels are for illustrative purposes only - you trade at your own risk)
