Making Money in Digital Realty as easy as 1, 2, 3, 4

Written By: DragonFly Capital


It has been a long time since a REIT has shown up in the bullish scan, but it happened today. Digital Realty ($ DLR) has been a steady as she goes stock to won for the past year. Not that exciting, but hey, until August the market as a whole was like that. The difference with Digital Realty is that it pays a 5.2% dividend.

The stock had moved in a tight range from 64 to 67 for most of the year before a drift lower as the summer started. Early September marked the low and it has stair stepped higher since then. Going forward the momentum indicators are bullish and support more upside.


There are 4 price levels to use and keep an eye on as the stock moves higher. The first is 65.40. It just broke above this price making its first higher high to go with a higher low. This can be used as a stop loss level now. The second is the August high at 67.15. A move over that adds confidence to the push higher as it will also be over the 200 day SMA at that price.

Third is 69.50, the high price in July. From the current price that is already a better than 4% move. But this price unlocks the potential to retest the 4th level, the 2015 high at 74.60. Each level as it is passed can be used as a stop loss to lock in profits as you sit back and collect that fat dividend.

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