Underlying: Digital Realty Trust Inc.
Hourly Chart picture 1
Daily Chart picture 2
Daily Chart picture 3
Downtrend with a target of 65.50 $
Uptrend above 67.00 $ with a target of 68.50 $
Downtrend under 65.00 $ with a target of 64.00 $
Uptrend above 68.50 $ with a target of 71.00 $
Downtrend under 64.00 $ with a target of 62.00 $
Uptrend above 71.00 $ with a target of 75.00 $
Current situation and outlook:
Digital Realty Trust, Inc. is the world’s largest provider in the sector for server housing and Data Center Solutions. This US Company has more than 130 locations, which are spread across the globe. The share of the DRL is a S & P500 value.
The current situation is clearly visible in the short term technical analysis in the hourly chart (picture 1). The price is, if you take a look at this time horizon only, clearly in a downtrend. This downward trend consists of a small and a larger trend, in which the larger downtrend is the trend visible on the daily chart (picture 2, marked in yellow). The minor trend has been broken but it is now running again in trend direction. Thus, in the short term the first target is $ 65.50.
In a medium-term frame, the price is to be evaluated on the daily chart. As already mentioned, the visible trend is the greater downward trend. This was recently corrected and now shows the first signs of a continuation of the downtrend. Thus, the target of 65,50 $ could be passed under and the medium-term target of 64.00 $ should be aimed.
However, should the price rise over the mark of 65,50 $, the medium-term scenario would be broken for the moment. The still intact downtrend line is also to be considered.
Now taking a look into the daily chart with a little more history loaded, the upward long term trend should be clear visible – because there is where the value of Digital Realty Trust, Inc. is right now; in a far extended upward trend, which is now correcting. The correction represents the medium- and short-term downtrend previously described, and has now corrected almost 90 % of the last upward movement. In doing so, the mark went below the drawn trend line (picture 3).
The balance between movement and correction leads to the conclusion that in long-term this value is close to a trend reversal or a break in the trend since the correction ratio turned out much stronger than the last upward movement. Below 64.00 $ the uptrend scenario would be broken and courses up to 62.00 $ have to be aimed.
Pro falling prices:
– Rapidly falling candles, slowly rising candles
– Price below the uptrend line (picture 3)
– Falling prices in general strong market environment.
Contra falling prices:
– Long-term uptrend intact
– Resistance through rapprochement of the SMA200 & EMA200
The DLR share is initially very strong short directed, with the risk of breaking the long-term uptrend if this value continues showing weakness. Especially in a possibly correcting market conditions strength in short direction could arise.
To initiate a long entry the medium-term downtrend should turn up and the market should establish an upward trend. This alternative scenario is something for patient traders and should definitely be confirmed before trading.
Corporate performance indicators and any changes in the company should be always considered by a technical trader since this can lead to price fluctuations of any kind.
Disclosure according to § 34b WpHG due to potential conflicts of interest:
The author is not invested in the relevant securities or underlying securities at the time of publication of this Analysis.