STARWOOD PROPERTY TRUST INC (NYSE:STWD) - A Strong Technical Setup for Breakout Investors

STARWOOD PROPERTY TRUST INC (NYSE:STWD) has been identified as a potential breakout candidate by our technical screening process. The stock shows a combination of solid technical strength and a well-defined setup pattern, making it worth a closer look for traders focused on momentum opportunities.

Technical Strength

STWD currently holds a Technical Rating of 8, indicating a favorable trend structure. Key points supporting this rating include:

• The long-term trend remains positive, while the short-term trend has been neutral, suggesting consolidation before a potential move higher.
• The stock is outperforming 93% of its peers in the Mortgage REITs industry, reflecting relative strength.
• It trades above key moving averages (20-day, 50-day, 100-day, and 200-day), reinforcing bullish momentum.
• Recent volume trends show healthy liquidity, with an average of 2.26 million shares traded daily.

Setup Quality

With a Setup Rating of 9, STWD presents a well-defined consolidation pattern:

• Prices have been range-bound between $19.46 and $20.49 over the past month, forming a base.
• A recent Pocket Pivot signal suggests accumulation, often a precursor to upward movement.
• Support is established near $19.81, providing a logical stop-loss level for traders.
• Resistance lies between $20.13 and $20.32, with a breakout above $20.50 potentially signaling further upside.

The combination of a strong technical backdrop and a tight consolidation phase makes STWD a candidate for a breakout strategy.

For a deeper analysis, review the full technical report for STWD.

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Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before trading.