Will EQUITY RESIDENTIAL Break Out? A Technical Analysis Perspective.

EQUITY RESIDENTIAL (NYSE:EQR) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:EQR.

What is the technical picture of NYSE:EQR telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, EQR scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, EQR is only an average performer.

• The long and short term trends are both positive. This is looking good!
• EQR is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so EQR is leading the market.
• Looking at the yearly performance, EQR did better than 70% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
• EQR is an average performer in the Residential REITs industry, it outperforms 52% of 20 stocks in the same industry.
• In the last month EQR has a been trading in a tight range between 68.50 and 72.33.

Check the latest full technical report of EQR for a complete technical analysis.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:EQR currently has a 9 as setup rating:

Besides having an excellent technical rating, EQR also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 71.29. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 70.49, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for EQR in the last couple of days, which is a good sign.

Trading setups like NYSE:EQR

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:EQR and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.