September 24 Chart of the Day - Mid-America Apartment Communities

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Mid-America Apartment Communities (MAA) focuses on residential multifamily properties. It currently owns 103,600 apartment units across the Sunbelt region. The company focuses on markets with strong job growth, expanding populations, and high household formation rates. The result is strong demand for housing, which enables MAA to grow rental rates faster than the market.

As a real estate investment trust (REIT), it can benefit from falling interest rates. That means a lower cost of debt while making the yield on shares look even more attractive relative to bond investments.

Yesterday we reported that billionaire Stan Druckenmiller bought heavily into Kinder Morgan and he also invested heavily during the second quarter in Mid-America Apartment Communities. He established a position of 644,190 shares of the REIT worth $91.9 million at the end of June so we wanted to review the MAA chart from a price action technical analysis perspective.

Historically, the company has paid steady dividends which may be what attracted Drukenmiller.

We have featured over 300 Charts of the Day since May 2023 and teach Price Action Technical Analysis Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

On the monthly chart we can see that after setting its $231.63 all time high (ATH) back in 2021 price fell dramatically over the next few years all the way down to the $115 area last year.

Since then price has bounced and is steadily making higher highs and higher lows.

Weekly Chart

On the weekly chart we can see with much more clarity the fall from ATHs, and the slow and steady climb back up.  The bulls seemingly have bumped into some overhead resistance in pursuit of their next higher high.

Trading around $163.16 earlier today price may be attempting to reach its next potential overhead resistance zone in the $180 area but could fade some before that to establish its next higher low.

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans. 

So what's next?