Redfin Is Showing Relative Strength

Housing entered 2020 with strong fundamentals (lack of supply, demographics). Coronavirus magnified those trends by lowering interest rates and driving people from urban apartments.

Online real-estate brokerage Redfin has emerged as one of the top-performing names in the space, more than doubling on a year to-date basis. (It’s also risen more than 400 percent from its March low.)

This month’s volatility has dragged RDFN downward. It managed to hit a new all-time high above $55 on September 10, but then fell back into the mid-40s.

Interestingly, RDFN made a higher low yesterday than on September 4. This stands in sharp contrast with the broader market, which made a lower low this week. The stock is also holding its 50-day simple moving average (SMA).

There could be more volatility in the near term if the S&P 500 needs to stabilize further. However, RDFN is in a unique space. Momentum followers could return if yesterday’s higher low remains in effect.

Note: This chart uses TradeStation’s custom script Smart Relative Strength.

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