In today’s Super Seasonals: Trade of the Week we will look at Dynex Capital (DX).
Dynex Capital, Inc. is an internally managed mortgage real estate investment trust, which invests in residential and commercial mortgage-backed securities on a leveraged basis.
The stock has underperformed in the past year. The daily technical ratings are Neutral. The stock appears oversold, in my opinion, so now might be a good time to invest in the stock if you take more of a value investor approach. The Analysts currently have it rated a Strong Buy over the next 12 months.
From a seasonality perspective, we are coming into a very good period in the stock over the next couple of months…
In the Daily chart below there’s potentially a gap to be filled. If a reader wanted to consider buying around a gap-fill this might be a potential way to enter the trade in the $10.75 -ish area…
And a reader might want to give it time to breath and place a stop below the late October low in the $9.50-ish area.
Below is a Weekly chart…if a reader is a breakout trader, this is a potential idea to buy above previous week’s high of $11.39, while placing a stop below the previous week’s pivot low of $10.61.
If a reader is bullish now, here’s a potential Call to buy with a price target of $13…Try for a Limit of $1.00 if you want around a 2 to 1 Risk v Reward… that’s “if” price trades to $13.
As you likely know, there are literally dozens of solid ways to approach trading Dynex Capital (DX) with a bullish bias. The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Hopefully this information has proved worth your time. Please remember, do your homework, and fully understand the risk before trading anything.
To learn more about seasonal information on Dynex Capital (DX) and other solid seasonal opportunities click here SuperSeasonals . For other seasonal opportunities, please click on the link below to access the Super Seasonals software:
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