Conclusion, Investment Implications, Strategy
The LXP Industrial Trust (LXP) is amid favorable conditions to resume its February 2021 major uptrend from major Strategic support near $13.54, which is currently being tested. A sustained rise above this area would target an additional 12% rise to $16.00. This is an Asbury Value trade idea.
Analysis and Rationale
Lexington Realty Trust (NYSE: LXP) is a publicly-traded real estate investment trust (REIT) that owns a portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased industrial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions, and other transactions, including acquisitions.
The rightmost green highlights in the upper panel of Chart 1 below show that LXP is currently rebounding from a test of its 200-day moving average, a widely-watched major trend proxy currently situated at $13.54. Meanwhile, the green highlights in the lower panel show that XLP is also rebounding from Jan 10th monthly (21-day, our Tactical time period) oversold conditions, and that previous similar conditions on Sep 27th and Jly 1st of last year coincided with the past two significant bottoms in the stock.
Current conditions suggest a new Tactical buying opportunity within LXPs February 2021 major uptrend as defined by its 200-day MA.
Chart 1
Table 1 below shows that considering a $16.00 upside target and a protective stop placed below the $13.74 area, a long entry price of $14.30 would provide a 1:3.0 risk/reward ratio (risking $1.00 to make $3.00) with an initial risk of 3.9%.
Table 1
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.