Digital Realty Trust, Inc., a real estate investment trust (REIT),
through its controlling interest in Digital Realty Trust, L.P., engages
in the ownership, acquisition, development, redevelopment, and
management of technology-related real estate. It focuses on
strategically located properties containing applications and operations
critical to the day-to-day operations of technology industry tenants and
corporate enterprise datacenter users, including the information
technology departments of Fortune 1000 companies, and financial services
companies. As of December 31, 2008, Digital Realty’s portfolio
consisted of 75 properties, including 62 located in North America and 13
located in Europe. Digital Realty Trust has elected to be treated as a
REIT for federal income tax purposes and would not be subject to income
tax, if it distributes at least 90% of its REIT taxable income to its
stockholders.
Take a look at the 1-year chart of Digital (NYSE: DLR) with the added notations:
After a nice rise back in January, but has since traded mostly
sideways. During this sideways move, the stock found support at $62.00
(green). DLR has hit that support level a couple of times so far this
year, and now the stock is testing that support once again. Traders
could expect some sort of bounce, but if the $62.00 support were to
break, lower prices should follow.
The Tale of the Tape: DLR has an important level of
support at $62.00. A trader could enter a long position at $62.00 with a
stop placed under the level. If the stock were to break below the
support a short position could be entered instead.
No comments:
Post a Comment