ARMOUR Residential REIT, Inc.

ARMOUR Residential REIT, Inc. (NYSE: ARR) is a real estate investment trust (REIT) engaged in investing in residential mortgage-backed securities guaranteed or issued by a US Government-sponsored entity. Noted below are the key price indicators for the stock:

Technical Observation (on the Weekly Chart)

ARR’s prices are trading with the lower lows and lower highs formation and sustaining below a downward sloping trend line, indicating an overall downward trend. Moreover, the leading indicator RSI (14-period) is moving around an oversold territory with a reading of 33.67. The 21-period and 50-period SMAs are above the current market price (CMP), supporting a negative bias.

 Source: REFINITIV

Individuals can evaluate the REIT based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Ellington Residential Mortgage REIT

Ellington Residential Mortgage REIT (NYSE: EARN) is a real estate investment trust (REIT) that operates its business through two wholly-owned subsidiaries: EARN OP GP LLC, and Ellington Residential Mortgage LP (Operating Partnership). Noted below are the key price indicators for the stock:

Technical Observation (on the Weekly Chart)

EARN’s prices are sustaining above an upward sloping trend line; however, facing stiff resistance from the 50-period SMA, indicating the possibility of sideways to negative movement. The leading indicator RSI (14-period) is moving below the midpoint with a reading of 41.31. The 21-period and 50-period SMAs are above the current market price (CMP), supporting a negative bias.

Individuals can evaluate the REIT based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is March 20, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

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