With the perceived notion the interest rates are headed higher, it has had a negative impact on plays sensitive to it. Think utilities and staples groups. Some select REIT plays have more than held there on and to be quite frank resemble growth stocks with their outsized returns. Below we take a past and current look at best of breed play DFT. The first chart is how is was presented in our Wednesday 12/21/16 Game Plan. The break above the ascending triangle carries a measured move to 51, but of course price action has a mind all of its own and should be respected for that reason. It has ran more than 8% since and now looks ready to challenge all time highs which is detailed in the second chart below.
Stocks that can be bought as they take out bullish ascending triangle patterns are DFT. DFT is a REIT play higher by 38% YTD and over the last one year period and sports a healthy dividend yield of 4.6%. Earnings have been mixed with gains of 3.3 and 3.7% on 7/28 and 2/4 and losses of 4.7 and 1.5% on 10/27 and 4/28. The stock is higher 4 of last 5 weeks and this week by 4.2% thus far (looking back on weekly one sees powerful streak with 20 of 24 weeks ending between 1/29-7/8 advancing more than 60%). DFT now shows a bullish ascending triangle that began in early September. Enter with a buy stop above 44.30 and add to above cup base trigger of 49.07.