AvalonBay Communities, Inc. engages in the development,
redevelopment, acquisition, ownership, and operation of multifamily
communities in the United States. As of January 31, 2009, the company
owned or held a direct or indirect ownership interest in 164 operating
apartment communities comprising 45,728 apartment homes in 10 states and
the District of Columbia. It also held a direct or indirect ownership
interest in 14 communities under construction, as well as held rights to
develop an additional 27 communities. The company’s markets are located
in New England, the New York/New Jersey metro area, the Mid-Atlantic,
the Midwest, the Pacific Northwest, and the Northern and Southern
California regions of the United States. AvalonBay Communities has
elected to be taxed as a real estate investment trust and would not be
subject to federal corporate income taxes if it distributes at least 90%
of its taxable income to its stockholders.
Take a look at the 1-year chart of Avalonbay (NYSE: AVB) with the added notations:
AVB may be forming a bearish chart pattern known as a double top.
Double tops are reversal patterns and are as simple as they sound:
Rallying up to a point (T), selling off to a support, and then rallying
back up again to approximately the same top (T).
AVB appears to have formed the double top price pattern (blue) over
the last 3 months. As with any price pattern, a confirmation of the
pattern is needed. AVB would confirm its pattern by breaking the $163
support (red) that was created by the double top pattern.
The Tale of the Tape: AVB has formed a potential
double top. A short trade could be made on a break of the $163 level.
Since there is no guarantee of a breakdown, a long trade could be made
at $163 if a trader is willing to disregard the pattern.
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