The Federal Reserve on Wednesday suggested the pace on increasing interest rates would be slower than previously thought. There was renewed interest in treasuries and the 10 year treasury yield dropping nearly 10 basis points in the two hours following the Fed policy statement. Those remarks by Fed Chair Janet Yellen gave REITs a boost in late trading on Wednesday and HME was a beneficiary, holding key price, gap and moving average support. There appears to be a significant amount of support in the 71-72 range and HME printed a reversing hammer candlestick on heavy volume after testing this support zone. Check out the chart:
The blue circles at the top highlight the industry group (REITs) and the nice dividend yield on HME of 4.19%. This "full quote" box is found under Chart Attributes and next to Volume. Checking this box will provide this extended quote information on your charts. The continuing reversal of HME and many of the REITs will be dependent on whether the Dow Jones REIT index ($DJR) can clear 315 price resistance. While the red arrow at the far right shows this level could be difficult, there is a positive divergence on the DJR on its daily chart, providing a bit more optimism. Fed Chair Yellen's dovish comments on Wednesday didn't hurt either.
Happy trading!
Tom
