STORE Capital Corporation (STOR) – real estate investment trust in downward trend

STORE Capital Corporation is an American REIT (Real Estate Investment Trust) that focuses mainly on investments in single-tenant properties such as restaurant chains, drug stores, and retailers as well as service and distribution buildings.

In this analysis, we explore the possibility of a continuation of the existing downward trend.

fig. 1: STOR daily chart

 

The stock’s current chart image

The daily chart (fig. 1) clearly shows an established downward trend that has continued on beneath the SMA 200 and is now in a correction. As it did so, the downward movements occurred with increasing volume. Elsewhere, too, the daily candles of the downward movements are clearer and stronger than the upward movements, exhibiting further weakness in this value.

 

fig. 2: STOR daily chart with targets

 

A battery of partial sale zones

When we zoom out on the daily chart (fig. 2), we can immediately identify several zones for profit-takings. Partial sales should be allowed for here. One can see the trend reversal nicely in the big picture; a downward trend replaced the rally, then broke the SMA 200 and continued to establish itself further southwards.

 

fig. 3: STOR 1-hour-chart

 

The subordinate trend

In the hourly chart (fig. 3), one can spot the subordinate trend that serves as a signal level for us. We have drawn in the advancing correction that we would want in order to be able to create a higher profit potential to the first target. As soon as this corrective upward trend turns around and forms signals, one can search for entries here. In the scenario sketched in, entries take place classically via a P2 trade or from out of its correction. Accordingly, the stop management occurs as trend trading in the hour.

If the prices significantly exceed the high at 25 USD, then a short scenario is void for the time being in this value.

Before an entry, one should take company news, the overall markets and the actions of the central banks into account.

 

Parameters

Entry: depending on formation of the hourly trend, between 23 USD  – 24.70 USD

Stop: depending on formation of the hourly trend, at the last high

Partial sales:

1st target zone at 22.50 USD
2nd target zone at 22.00 USD
3rd target zone at 21.50 USD
4th target zone at 20.50 USD
5th target zone at 20.00 USD

 

 

 

Disclosure of possible conflicts of interest:
At the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.

Disclaimer:

Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.

STORE Capital Corporation (STOR) – real estate investment trust in downward trend
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